Monday, March 20, 2017
You just finished watching a few episodes of house flipping on HGTV. Who doesn’t want to be just like Chip and Joanna Gaines? Are you ready to do your own flip? Here are some things you need to know before you invest on a property to flip.
1) Decide if you are going to pay CASH or take out a loan. If you are going to take out a loan, speak to your loan representative to get pre qualified. Since you are not going to live in the property, this will be considered an investment, which means your interest rate will be slightly higher than if you are purchasing a primary home or homestead. You will also be required to put at least 20% down payment on an investment property. Your monthly payments to a bank is a consideration since this will eat up your profits.
2) Decide on location. Ever heard of “LOCATION, LOCATION, LOCATION”? These are words that my parents (real estate investors) have engrained in my brain. A desirable area or neighborhood is best because you know it will sell at the highest reasonable price in less time.
3) Find the Property. You want to be able to find the best deal (lower than market rate) in order to yield higher profits on your flip. First, you don’t want to flip a property that does not need any work. The best flips are the ones that’s structurally sound, decent roof, newer windows, an HVAC system that is less than 10 years old, as well as modern electrical and plumbing. Also, you want one which needs only cosmetic changes such as new cabinets, countertops, flooring and paint. Check with the city or hoa if permits or architectural approval are necessary before purchasing the property. Applying for permits/approval can cause delays. See if there are any REO’s, Foreclosures and Short sales in your desired location. Here are 2 sites to get you started in your search:
4) Decide how much to pay once a property has been identified. Note this formula to determine if a property is a good flip. Take your ARV (After Repair Value), multiply it by .7 and subtract your repair cost estimate. This is the maximum amount you should be paying for a property in able to obtain a good profit margin.
Example, the market value of the property after you have completed the repairs is $300,000. Multiply this by .7 or 210,000. Subtract this by amount you estimate it will cost you to put it in top shape, example 20,000. 210,000-20,000, the formula suggests that you do not pay more than 190,000 for the property.
5) Time your flip. Once you have completed the repairs and ready to sell, you wouldn’t want your property to be sitting in the market. Time it so that you are listing it in the Spring, preferably in March when the buyers are out. This also means that you would want to purchase your flip in the winter time, when there are less buyers purchasing and you are most likely not be in a bidding bar with another buyer.
6) Get to know your contractors/vendors/real estate broker/lender. You want to do business with professionals that you trust to help you succeed. Pearl Jones is here to assist you in your first FLIP!
Did you recently purchase a new home which is your new homestead and you are currently over 65 years old? You do not have to wait until the following January 1st to claim your Over 65 Exemption in order to reap the benefits of your property tax savings. After the deed on the new property is filed, you can go the County Tax Appraisal website, download and complete the form, attach your new driver’s license (showing the new property) and file the form with your Appraisal District. You can begin your property tax savings on the date you moved into the property. Say SWEET!
Friday, February 24, 2017
The real estate statistics for January look good. It's a good time to Sell! If you need more information about real estate in your area, please give me a call at (512)786-7355.
This beautiful condominium close to Lady Bird Lake has been reduced to $340K. Located in the heart of downtown Austin, across Rainey Street. Access to newly
completed Hotel Van Zandt provide convenient dining and social options. Has been slightly lived in, just a few weekend visits for UT football games. Condo faces east, providing amazing morning and sunrise views; includes extension of the bar surface to provide seating space, full-length retractable blinds, wood floors and decorative lighting; 1 parking spot in the garage, as well as access to the fitness center and pool.
RARE One Story condo in Luxury Gated Community in Lakeway w/ panoramic hill country views! Located near Lake Travis HS, Baylor Scott White Medical Center, Oaks at Lakeway & Hill Country Galleria. 3 beds/3 baths w 2 car garage. Wood floors in master bedroom and 3rd bed (or use as study). Plantation shutters throughout; Built in wood entertainment center. Patio with flagstone & incredible views all the way to Mansfield Dam! Amenities includes pool, fitness center, playground, tennis, basketball & clubhouse. #102Aria #EnclaveAtAltaVista
Tuesday, January 10, 2017
This one story, over 2,000 sq ft home was recently SOLD while in Coming Soon Status. Property has 3 bedrooms, 2 baths, 2 car garage plus an office. Asking price was $415,000. Here is a list of a few of the upgrades the new owners will enjoy:
Custom electrical option for Interactive Home Plus system
Inspiration Appliance Package Upgrade, includes 5 burner cooktop, upgraded hood, oven, microwave and dishwasher
Full Gutters including in patio and master bay window
Custom Interior 5-1/4” baseboards
16’X 7’ Cedar Clad garage door
Gas line to dryer
Gas line on back patio for grill
2 extra outdoor hose bibs
Wood flooring (Pompeii Birch 7” wide planks) in Entry, Family room, hallway, kitchen and breakfast area, master bedroom and master closet
2” Plantation Shutters throughout
Alder kitchen cabinets with additional pull out drawers and pull out for trash can, framed glass upper cabinet doors, Lazy Susan,
Recessed lighting in bedrooms and family room
Under Cabinet lighting in kitchen
Mini Pendant lighting in kitchen
Additional TV plug in back patio
Home Theatre Pre-Wire 5.1
LyriQAudio Zone incudes keypad and ceiling speakers
Upgraded Master Bath Shower
Upgraded Framed Mirror in both baths
Upgraded carpet; upgraded bath wall, backsplash and floor tiles
Cantera Front Door with oil rubbed bronze
Water filter in kitchen
Stained back patio and front sidewalk
This gorgeous one and half story home in Ridge at Alta Vista was SOLD. Here are the specifics of this property.
BREATHTAKING VIEWS of the Hill Country, BACKS to GREENBELT!
· One and a half story home
· Built in 2008; 3,889 sq ft per TCAD; 3 car garage
· 4 Bedrooms and 3.5 Baths all on first floor
· Wood floors in Formal Living and Formal Dining Rooms with floor to ceiling windows
· Gameroom on second floor with built in desk and cabinets
· Family room and rear porch pre-wired for speakers
· Kitchen with upgraded granite countertops and expanded bar height counters, island and double ovens, cherry cabinets (some cabinets with glass doors)
· Master Bedroom with hill country views
· Master bath with luxury package which includes clear glass shower, double shower heads, spacious double vanities with marble countertops and two large walk in closets
· Completely fenced, lush landscaping and vegetable garden with sprinklers on side of property
· Large covered patio with outdoor “Trex” deck with storage
· Motorized shades in the family room with window tinting or window treatments throughout
· Security system with 3 Cameras and DVR
· New roof, gutters and garage doors in 2015
· Enjoy amenities such as gated community, Jr size Olympic pool with water feature, fitness center, playground, tennis and basketball courts, and clubhouse
· Conveniently located near Lake Travis High School and Lakeway Medical Center and a short drive to Hill Country Galleria and Oaks at Lakeway