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Tekkie®

posted for all of us...

On Mon, 21 Mar 2016 11:43:15 -0700, Oren wrote:

On Sun, 20 Mar 2016 18:55:37 -0700, "Ashton Crusher"
wrote:

On Sat, 19 Mar 2016 17:06:08 -0700, Oren wrote:

[...]

House up the street was on the market for over a year and it was
painted with new carpet, pretty much fixed up to what I would consider
fine move in condition. Didn't sell, didn't sell. Finally sold for
about 50K less then the original asking price to a flipper. He gutted
it, took out walls to create a very large "great room" setup, took out
fireplace, filled in sunken living room, rearranged the bathroom,
including moving the toilet so there was more room for a bigger
shower, completely redid and rearranged the kitchen with all new
everything. Then sold it for $150K more then he paid. I forget the
exact prices but at the time I calculated that he made at least $75K
for his three months worth of trouble. Houses around here just don't
sell "as-is" except for rock bottom prices to flippers.

Was his $75K after agent commission and income taxes?

When I bought this house "as is", the agent was a dual agent --
seller/buyer. Paid $25K under listing price. You have to sign some
document for the dual agent, though. In Nevada.
Did he have a permit for removing the walls? And an engineering
report? Was it a load bearing wall, and if so was it properly
supported? This is what happens in so many flips. The walls are
removed to give "open concept" and the proper support restructuring is
not done.. Then to top it all off, the electrical changes are not done
properly, and there is no inspection and no permits - 6 months later
the plaster/drywall is cracked because the structure is sagging - and
the new owner has no recourse.

I would NEVER buy a flipped house without very extensive documentation
of what was done. Way too many pitfalls.

I've looked at a few around here where there were NOT any extensive
renovations, like moving walls - and they were scary enough!!!

Yup, they ain't all Flip or Flop material.

Some of the renovations I have seen done by owners are scary and they aren't
even flipping them.

It's even scarier since I've been watching Holmes makes it right. Houses 5
to 10 years old disaster areas because there is no knowledge or
craftsmanship. Supposedly "good builders" The low bid gets the job.

--
Tekkie