Posted by Mike (Seattle WA) on June 17, 2005 at 23:13:33:
9 months? Must have been a good year 
1st laminate, and deal details - here we go - Posted by Steve-WA
Posted by Steve-WA on June 17, 2005 at 11:43:29:
OK, I’m convinced to try it. First one should be complete tonight.
Bought 1982 Liberty 2/1 for 1900, many big floor holes - kit faucet leakage cased nearly full LR and Kit floor replace. Also, hallway looked to have been body slammed. New lino in bath, hallway/laundry area, and kit; bedrooms OK, laminate going into LR and halfway down hall.
Also had to rebuild curved counter complete - only re-using wood paneling facing and drawers - recycling some doors from another tearout; new countertop, S/S sink, and faucet.
Light fixtures, fan, blinds, smokes, paint, sundry other minutiae - total costs about 1.2K parts & labor. Will be complete less than two weeks from acquisition = no holding costs.
Have a qualified buyer waiting for completion. Trying to get loan for 10.5K cash by the time work is done, or I will finance for 12.5K, with a significant dp (significant = more than my purch and costs); we’re shooting for 5K, if the cash purch doesn’t pan out.
Projected numbers: Cash sale = ~7.4K clear profit, right now.
Note sale = if she gets the 5K down, and signs for the $400/mo payment (her number - note to newbies: when a buyer says how much a month, ask them what they want to pay), then it’s 21 months of free money (remember, my costs are 3100, and a 5000 dp covers that and more, so my calculator screams error when I calc yield)/ cashflow in my pocket = 21 x 400 = 8400, plus the 5K down.
If she can only get 3K for dp, then it turns into 28 months of $400 (cashflow in my pocket = 28 x 400 = 11,200, plus the 3K down = 14,200), and yield, which can now be calculated (new PV of $100), works out to . . . (drumroll please) . . .4,800%
Buyer’s happy; she gets the house she wants at terms she asked for.
PM’s happy; she gets continuing lot rent.
Buyer’s happy, he got the price he wanted.
Rehab crew is happy - they get paid, and they get to finish the job! They work good, and cheap. Their $700 labor looks like 5x that much.
I’m selling it much cheaper than I should, but I’m OK with it too. I want the note.
(WoW)!
;-)3
Re: 1st laminate, and deal details - here we go - Posted by Chris Reuman (Maine)
Posted by Chris Reuman (Maine) on June 17, 2005 at 17:54:42:
Sounds like another awesome deal. Just one more step closer to JOB elimination day. The real estate business is a lot easier when you have a good handy man and/or good repair crew.
I just put an offer in on a stick built house. It is a bank foreclosure. The house has a kitchen and bathroom in the daylight basement and three bedrooms upstairs. The entire basement is concrete foundation and the worst mold I have ever seen. The realtor wanted $29.9k, I offered $10k with two of the worst pictures I had taken. I figure around $20k - $25k of work, and when done will be worth $85k-$100k. Good enough.
It has been raining here all week. It makes me remember when I lived in Seattle and it would rain for 9 months.
Best investing and stay dry, Chris