One Week Down.....Many More to go!

If I ever lay ceramic tile in a house I will choose the largest tiles possible so that the poor bastard that has to rip them up 100 years from now won't have to do it one square inch at a time!  That has been my week.  I have been ripping up ceramic floor tile, one tile at a time.  It's kind of therapeutic until I get to a spot where the tile layer decided to dump on extra glue.  I thought that demolition would be a good way to get pent up frustrations out but frankly it quite often increases my frustration.  When that happens I just move onto something else and come back to it later. 

I listed the appliances on kijiji but my patience are thin for that kind of stuff.  You want it or not?  I'm practically giving them away so stop asking me so many questions and just take the damn things if you want them.  I'm about to carry them out to the end of the laneway myself and stick a "FREE" sign on them.

Asbestos removal guys were in yesterday so we are free and clear of that stuff.  And my contractor is coming Monday or Tuesday to go over what I need done.  It always looks worse before it looks better.  There are times I look at it and think "what the hell have I done?" but then I just start to laugh because that is what I say about most of the things in my life and somehow my life has turned out awesome so far.  I am most likely way in over my head here but I'm 100% sure I'll figure it all out and everything will be fine because as my favorite saying goes "Everything works out in the end, and if it's not working out, then it's not the end." 

I have met most of my neighbours.  To the right there is an old Chinese woman who doesn't speak a word of English; however, I think I got it across that I am Natalie and I bought the house next door.  She smiles and nods at me so I think we're cool.  The neighbor to the left is awesome.  She is just thrilled I'm not a slum lord.  I took her and her boyfriend on a tour and they are cheering me on the whole way. 

A dear friend of mine has been helping with the demolition.  He is an old German man who lives on my street.  Since I moved in I have never taken my garbage out or shoveled my own laneway.  He insists on "taking care" of me.  He slaves away at the house with me everyday.  He talks a lot but I am wearing a mask most of the time so I can't really respond anyway.  Actually, we are kind of funny together.  He is a hard worker, that's for sure.  I'd say I give him a run for his money though.  I always like to find a fast way to do things so when we have to dump our pile of ripped up tile into the dumpster he complains it's too heavy.  I say there is no way I'm picking up those tiles by hand and throwing them in the bin so we heave that wheel barrow over the edge of the bin on three and every time we're done he tells me to straighten out his back so I jab my knee into his spine and pull on both shoulders and we're off to the races again.  He tells me I have particularly big biceps for a woman.  I suppose I do.  We got into a deep discussion yesterday about drinking alcohol.  I don't drink at all so I gave him my long list of reasons why.  When I was speaking I said "....if I really wanted a treat, I'd drink chocolate milk" and lo and behold the man who doesn't eat about 4/7 nights a week because he can't afford it showed up with 1L of chocolate milk for me today.  Too cute!

Anyway, if I didn't have big biceps before I sure will after all of this!  Next week I'm hoping to get the two walls down that need to come down while the contractor does the bathroom renovations.  Windows need to be ordered and kitchen re-drywalled and measured for new cabinets.  That's the plan.....but then, life never goes as planned. 

Holy Flip, Here She Goes Again

Well, today my flip house is officially mine.  Keys are in hand and I have been physically in the dwelling twice today wandering through scheming up various plans.  I can't remember the last time I had to fight so hard for something.  I'm not sure what that means but I am optimistic that this whole process, at the very least, will be one hell of a good time.  I will admit that I had a moment of fear, which is very rare for me, when I entered for the second time today.  This time was different because I was alone and not trying to convince someone how great it was going to be.  Instead, this time, I visually scanned every baseboard, flicked on every light switch, looked in every closet, ran my hands along every wall and up and down every railing, opened the cabinets (only to be ripped out tomorrow), breathed in the scent of the old beauty, and sat staring into the space for at least 30 minutes.  I think to really know what a house needs you need to "live" in it for a bit.  And by that I don't mean you actually have to move your stuff in and live there but you have to feel it, walk in it's shoes for a bit.  So I stood there just soaking the place in.  It's got soul.  I'll give it that much.  But I knew that the minute I walked in. That's what sold me on it - soul.  I love old homes.  There is a certain feel to them that you don't find in new homes.  I hope to preserve some of that even after it's renovated. 

The whole thing leading up to closing was a complete shit show.  I was assigned the worst underwriter ever at MCAP who made me jump through hoops to get my financing which resulted in a legal mess.  My mortgage broker sent me a text the day before closing that said "I think I am more excited than you to close this deal and have it finally over with."  First, the owner of the house died two days after I bought it.  We were notified that there may be a delay in closing due to the reading of the will, etc.  Ultimately, there ended up being no delay on their end.  But then MCAP requested so many documents from me that they didn't have financing in place for me on the day of closing so we then had to request a delay in closing by 4 business days.  On the fourth business day financing was still not in place and the vendor was threating to sue me for breach of contract.  That particular day was a tad stressful but I was laughing again by the following day so not a big deal in the grand scheme of things.  With the help of many people pulling off last minute stunts we pulled it together and I got the keys Friday June 6th.  Exactly one week later than the planned closing date.

Lesson number one:  when you request additional financing on your new mortgage for renovations the maximum that they will give you is the lesser of 20% of the purchase price of the home or $40,000.

Lesson number two: the money is held in trust with your lawyer until the renovations are completed and someone has come to assess that you actually did the work you said you were going to do.

Lesson number three:  if you work with me in any way be prepared for things not to be normal.

Lesson number two - Are you for real!?!?!?!?  I asked for the money because I don't have the money.  So today I spent most of the day searching high and low for $40,000 to pay for the necessary renovations, which, by the way, is a very tight budget for the amount of work that needs to be done to this house.  However, miracles tend to happen daily in my life so I am not too worried about it......yet.

So what's the plan, then?

• Gut the kitchen and install all new cabinets, countertops and appliances.  Rip out the random shower that's in the kitchen and possibly create a main floor laundry room.  Add an island in the kitchen
• Refinish all hardwood floors and rip up tiles and linoleum that covers some of that hardwood
• Replace fuse panel with 100 amp breaker panel and re-wire entire house
• Construct main floor powder room where a random toilet sits in the middle of the hallway
• Replace all windows
• Knock down wall that encloses the staircase and main entrance wall to create a more open concept
• Rip the second floor sunroom right off the house
• Gut main bathroom upstairs and tear out linen closet to create a larger bathroom
• Return master bedroom to a bedroom.  It's currently a half-assed kitchenette
• Replace all wood trim/moldings/baseboards/window casings
• Clean up the basement and outdoor shed
• All new light fixtures
• All new door hardware and some new doors]
• New plumbing throughout
• Rip up back yard fence and garden and create interlock patio (optional....only if money available)

 

My lovely kitchen.  But it's a good size.  I have lots to work with.                

 

The upstairs main bathroom.  It's missing a toilet.  That is randomly placed in a room of it's own in the hallway.  But I will rip out this bathroom and re-create it entirely so the toilet fits in the bathroom

The third bedroom.  Jackpot.  I found hardwood underneath!

Upstairs hallway. I LOVE the banister.

The second floor sunroom was a good idea but it resembles the Crazy Crooked Kitchen at the Museum of Science & Technology at the moment.  Not worth salvaging.  Just going to rip it off and drop it directly in the dumpster that will be below.

 This is a random shower in the kitchen.  This section may end up as main floor laundry. Rotary phone still works though ;)

Here's the powder room.  Just a toilet - no walls, no door.  Just a toilet.  BYOTP by the looks of it too.

Here is the dining room which I will make living space because the kitchen is an eat in kitchen.  No need for a formal dining room.

Living room.  I <3 this room.

 

Main bathroom part II - a toilet.  Again, all by it's lonesome.

 

 

                                                     Bedroom. Almost perfect just as is.



I will renovate this house as quickly as possible and then list it.  I suspect this will be sometime in August 2014.  Not an ideal time to sell.  Therefore, I plan to list it for just 2 weeks.  If it does not sell for the price I want I will move into it for the fall/winter and list it May 1, 2015.  Let's pray for a quick sale in August because moving is just another additional expense!

Game on!

What Was I Thinking?

What was I thinking when I said I would go around Ottawa and find flip houses?  Did I mention that my husband and I have 3 kids with the youngest being only 17 months old??!?!?  I don't have time to visit multiple houses on the MLS and find good houses to flip!  Maybe in 5 years, but not right now.

On the other hand, that still doesn't stop me from browsing all of the new listings now and again and I have found a couple of interesting sales that I think would make great rental properties.  The first one is at 325 Lebreton Street in Ottawa.  It's a two bedroom townhouse.  I am not a huge fan of two bedroom houses because they could potentially be a tough re-sale but in this case, renting it would be great and it could pay for itself.  In the future a third bedroom could be added in the basement, potentially. It listed on January 18, 2012 at $249,900 and by February 1, 2012 - only two weeks later - it already had a price drop to $244,900.  I have noticed that things are not moving as quickly as they once did so sellers who really need to get rid of a property are being forced to lower their price.  Take it from me, I just had to do that too :(  Spring is not too far away though so I suspect the market will pick up and things won't sit for as long but I would still take my chances on this particular unit and bid low or wait a little longer and see if another price reduction occurs.  I have not seen this unit other than the pictures posted online but I do know that the area is on it's way to becoming a very trendy part of the city.  There are many old and unmaintained houses in the area now but some developers have already gone in and torn some down and created new construction.  It's a great location in terms of shopping, restaurants, public transit, etc.  I think it would make a great rental property for now and when the area develops a little further it would likely result in a very profitable sale down the road.

The second house I have had my eye on is another row house at 1084 Gladstone Avenue  in Ottawa.  It's an end unit with some great potential as a rental unit or a flip. If you were going to flip it though, you'd have to start today and have it ready for April 1st (or earlier) when the Spring rush starts.  I love old houses.  They have character and a special warmth about them.  Someone once told me that they felt new houses to be "soulless".  I have stolen that phrase and referred to it many times.  I could not agree more.  This particular house is an oldie and could also be a goodie. It has been listed for sometime now and has had a price reduction (or two) over the past couple of months.  It's vacant which sometimes suggests a real need to sell, assuming that the owner may very well being paying two mortgages at one time.  This house also has a great location near shopping, public transit, schools, restaurants, etc.  There is no parking, but this is common in the downtown area, and many buyers don't have cars anyway and choose to walk or use public transit.

Those are my picks for the month, without seeing them of course.

Have fun :)

I Have an Idea!

OK, so I am no Donald Trump.  First of all, I have all of my own hair, but more importantly I don't have gobs of money to invest in real estate....yet.  So I can't flip another house just yet.  But what I can do is shop around for them and then showcase them for you.  Have you ever thought of flipping a property?  Fearful of the outcome?  Not confident in your cost estimating skills?  Can't find the diamond in the rough?  Well, let me do it for you!

Each week I will scour through the MLS, Grapevine, Ziglu, ComFree, and whatever else there is to find those gems just waiting to be renovated so they can showcase their true beauty....and make you some money!  I am so confident in my abilities that if you choose to buy one of my "picks of the week/month (depending on the season)" I will act as a consultant for you throughout the process.  If you lose (or just break even), I get nothing.  If you win, I get 0.5% of your total sale price.  Deal?  Now give me a weak or two to check that out with my lawyer.  This won't be the first crazy thing I've ever tabled.  But that's why I pay him the big bucks...to figure out my crazy ideas and make them work!

If you are not from my area I think the reasons for buying a particular property still apply no matter where you live so you can still use my picks as templates for other areas across the country or around the world.  For example, the top 5 things to look for are:

1. Solid Foundation - the foundation is just that...the foundation of the house.  It's critical and can be very expensive to fix.  I read somewhere the other day (I wish I could credit whoever it was, but I forget) that one in three basements in Ottawa leak.  Wow!  That's crazy.  This is something that has to be checked and double checked because it will come back to bite you in the ass when your buyers' home inspector discovers it.  This is a deal breaker for many buyers.
2. Neighbourhood with potential - if you want to flip a house you need to buy in a sought after neighbourhood or be able to predict which areas are on their way to being sought after.  Problem is, the sought after neighbourhoods usually command higher prices but if you can find one in really rough shape it could be worth it.
3. Curb appeal - always helps.  After all, it's the outside of the house that people see first.  Problem is when you are flipping a house you can't usually afford to rip off siding for example, and replace it with brick.  This type of renovation is usually too costly.  Therefore, look for a house that is clean looking and could be jazzed up with a new front door, for example, or some simple landscaping.
4. Windows/Roof/Heating/Cooling - if any of these items are in need of replacement  this could be a big hit to your wallet.  If you are flipping a house you need only make sure these items are not causing damage to the house (i.e. leakage).  You can get away with "older" windows, roofs (did you know I checked and it's not "rooves"?) and furnaces but they can't be too bad because the buyer will try to knock money off your selling price to cover the replacement costs.
5. Layout - and more importantly, support walls.  You might have a crappy layout but tearing down a wall or two is actually not that costly and can have a major impact on the appeal of the house for buyers.  But you can't tear down a support wall (usually) so if you have plans to make rooms bigger or create that ever-so-in-demand "open concept" you need to find out which walls are support walls.  Fortunately, it's usually pretty easy to tell.

So there it is.  My idea of the day.  But seriously, if you have ever thought of flipping a house and just haven't taken the plunge.  Now is your chance!  It's Friday today so stay tuned for next weeks "pick of the week".  I will visit each property multiple times if I have to and make sure I have a comprehensive breakdown of what I think the house needs and what I think it will cost.  I will share why I think it would make a good flip and things to be cautious about!  I love it!

It's a Happy Sad Day

My house is SOLD!!!  Yes, I am happy but I am also disappointed that after all of the blood, sweat and tears - literally - I just broke even!  It goes to show you how much of a difference you have to sell a house for to actually make a profit.  I sold the house for $40,000 more than I bought it for but I spent $25,000 on renovations and another $5000 to run the house vacant while it was for sale for the past 6 months and then the last $10,000 to the realtor who finally sold it for me!  I do, however, get my investment paid back to me though.  I put $10,000 down on the house and I have paid down another $10,000 in principal on the mortgage over the past 2 years and I did earn close to $5000 in rental income early in the year and $14,000 the year before when it was rented.  So I will have a nice lump sum of $20,000 to pay to other debts :) and then I will start the process all over again!  Yes siree, you heard me right, I will start the process all over again.  I didn't lose and I learned a lot so I feel better equipped for the next time around.  I can tell you the #1 thing that led to my pseudo-failure here.....If you want to sell a house for top dollar you must get it on the market April 1st.  As soon as Spring is even thinking about being in the air people start thinking of moving.  In April/May a house identical to mine sold for $276,000.  $16,000 over listing price in a bidding war.  And, my old neighbour sold his house for $14,000 over asking price in a bidding war around the same time.  Why?  Because inventory was low and people wanted to close deals and move before summer started or before summer ended (it is so damn short after all).  TIMING IS EVERYTHING!

I picked up a the nice shiny cheque from my lawyers office this morning.  3 days after closing,  albeit, but I got it!  You know, it's become a joke to the people around me how nothing ever comes easy for me.  For some reason shit always goes wrong.  For example, after the deal was accepted and signed something came up with the house inspection (those effin things are useless...but that's another story...) so I had to drop the price another $2,000.  Then once the paperwork got to the lawyers another issue came up with the common area parking lot behind the house and I had to give her another credit of $1000 which my lawyer agreed to pay 1/2 of because he never pointed this issue out to me when I bought the house.  Don't think I didn't have to fight for that one though.  Then, the day before closing the law clerk called to tell me everything was ready and would I like to come in.  I said I would come the following day, on closing.  So assuming things weren't ready for some silly reason, I gave her a whole other day to get shit together but, what do you know, when I showed up on closing they claimed to be waiting for some things and didn't have my money yet!!!! What up with that? 

Anyway, I have to laugh if only to save myself from crying.  My husband took one of my old lines and used it on me the other night when I was feeling particularly discouraged.  He said "well you didn't lose and you learned a lot."  I ALREADY KNOW A LOT....JUST ONCE, CAN I WIN....CAN I JUST FUCKING WIN WITHOUT ALL THE BULLSHIT LESSONS ATTACHED!  I'm tired of learning.  At the ripe old age of 35 I should be close to knowing everything there is to know in life after all the shit I've been through and "learned from".  Give me a break!

I digress....

So, I am trying to stay house bound for the next year or so, so that I don't drive by anything I might be tempted to buy.  I need to save up some money first....but don't run away....cause I'll be back with another house flipping funny story someday!

Please Don't Let This Jinx Me :)

So 6 months minus 3 days, this damn house has been on the market BUT I got an offer on Friday!  Why?  Because I had a good plan.  House was originally listed for $259,900 then we lowered it to $254,900, then we lowered it to $244,900 and still nothing.  So last week I e-mailed my realtor late at night (because that's when I come up with brilliant ideas....when I am supposed to be sleeping) and I told him to pull it off and re-list as a new listing at $229,900 and to have an open house this past Sunday.  He told me that was too aggressive.  Well he's not paying the mortgage, taxes, heat, hydro, and staging furniture rental now is he!?!?!?  So I told him to just do it!  I got an offer the very next day for $225,000 and I countered with $229,000 for a closing date in less than 30 days.  The faster the better for me, right?  They agreed to the quick closing if I took $227,500.  I accepted.  It's, of course, conditional upon inspection and financing but those conditions have to be lifted by November 23rd.  I have my fingers crossed.

I bought the house for $185,000 and put $25,000 into it now (furnace conked out last week and that was $3500 and I am up to $2000 in furniture rental costs).  Also need to minus realtor fees of $10,000 and legal fees of $1500 and I am walking with $22,500 in my pocket.  So, at the end of the day, I am still ahead.

The usual question du jour is "Are you going to have anymore kids" and my answer is always "HELLS NO!"  Would I do another flip depsite this one being on the market for 6 months.....HELLS YES!  It was totally fun, I learned a lot and I still came out on top, so why not?  Of course I'll do it again.  It's all about timing.  I just have to wait for the right house at the right time.

Pray that inspection goes well and my buyer gets financing, ok?

Back from Hiding

So the deal fell through due to lack of financing...back in early June...and the house is still on the market now!  Why?  I don't get it!

All of the statistics say the Ottawa housing market is still strong.  Members of the Ottawa Real Estate Board sold 1,712 residential properties in June 2011 through the Board’s MLS® system compared with 1,543 in June 2010, an increase of 11%. In fact, here is a quote from the Ottawa Real Estate Board's President:
“It’s obvious that the dream of home ownership is alive and well in Ottawa, with solid sales numbers like these. First-time buyers are out in the market in a big way, due to continued low interest rates, and after last year’s HST-affected spring, we’re seeing a return to what the June resale market usually looks like in Ottawa.”

I am not really that worried about it though.  After my first offer fell through the buyer came back with a lower price that she could be financed for.  I said "no way".  I will not sell it at a low price just to get rid of it.  I will wait and get the price I want. 


So I wait....


There are still quite a few showings and I say as long as there is activity a buyer will come along sooner or later.  The place still looks awesome.  I have rented staging furniture for $400 per month and I freshen it up with a quick vacuuming and dusting each week.  


I have been laying low these days in terms of shopping for my next flip because it's a sellers market right now.  Although, someone called me the other day about a Power of Sale on Timberland Terrace.  The neighbour said it's "trashed".....to that I say "perfect".  I haven't made any calls about it yet or gone to see it but I have it tucked in my agenda and may pursue it this week.


I will keep you posted.  Keep your fingers crossed that my house sells before July 24th.  If not, I have another rental furniture payment due :(