I am finally writing my fix and flip update for August. Since September is almost over I thought I would combine the two months into one article. August was not a very exciting month for flips since I had ten going at once and I was focused on getting those ten on the market and sold. September has been a much more active month with fix and flips and I have some exciting news: I just got a new fix and flip under contract and three of my properties are for sale and under contract!
Contractor update on my fix and flips
Up until the last couple of months I have never had more than seven fix and flips at once. I have had ten for a couple of months and it is not easy to manage so many proprieties. My biggest issue has been finding good contractors who will work fast and for a reasonable amount of money. The contractor I had used for years went downhill fast when he stopped doing any of the work or visiting the job sites. I had to find new contractors and I believe I am in a good place now. I have hired five new contractors in the last 6 months and four of them have worked out well so far. One of the contractors made a lot of promises about the amount of work he could do and the time it would take that he could not come through on. I still do not have enough contractors for all my current flips, but I had 8 at one time that needed repairs. Going forward I should have a better system for getting flips repaired and sold quickly.
Fix and flips bought in the last two months
I told myself I would not buy anymore flips until I sold some and I have kept to that promise. There have been no new purchases in the last two months and I have focused on getting some sold. During the last two months I have not seen very many good deals that I would want to buy. To be honest I did see one that I made an offer on, but it was a very low offer and I was beat out on it. There have been no amazing deals that I wished I would have been able to buy.
New fix and flips under contract in the last two months
I did break down and get a new fix and flip under contract this last week. This house was listed about a week ago only two blocks from one of my other flips. I went to see the house as it was listed for $100,000, which is extremely cheap! My flip two blocks away was bought for $125,000 and is listed now at $179,900 and under contract. I viewed the home and it needed a lot of work and was built in 1898. I decided to pass, because I still have my ten flips and this was not quite a good enough deal. The house went under contract right away, but I saw this week the house came back on the market and the price was dropped to $75,000. At this price I was very interested and I made an offer right away. The seller countered my offer and I quickly accepted.
This house is very old and needs a lot of work, but it is so cheap that I cannot see how I couldn’t make money on it. I figure it will need $25,000 to $30,000 in work and my assistant thinks it will be worth at least as much as the flip I have under contract for $179,900 in the neighborhood. We will see!
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Fix and flips on the market and repaired!
I have not sold a fix and flip for months because of my contractor problems. In August I listed two properties and both went under contract! I also listed a third flip this week and I just accepted a contract on it today. I now have three fix and flips set to close in October which will be very nice. It takes a lot of money to flip houses, and I need to sell some to get some cash freed up to keep paying my contractors and buy new properties. Here are before and after videos of one of the flips that is under contract.
Update on my other flips in progress
Even with all the new contractors and houses being finished, I have four flips sitting with no work being done. One of those will have work starting Monday and the other three are still weeks away from being started. The good news is that two of my flips are almost done and should be on the market within the next two weeks. Rental property number 11 is being worked on by one of the contractors as well and it should be finished soon too. I also decided to put for sale by owner signs up on many of my flips that are not complete yet. I figure if someone wants to buy one of them as-is and I can still make money on it that is a great deal for everyone. So far we have had many calls, but not offers on any of the for sale by owners. I did not want to put them in MLS because the price will be constantly changing as work is completed.
Future plans for fix an flips
I am buying the new fix and flip in mid October, and I will give all the details on it at that time. I plan to get the three flips under contract sold and then I can look at buying some more flips or rental properties.