Now we are into the challenging part of this transaction, finding a retail buyer that can qualify and afford this house.  I have had another dozen or so calls on this house since last week and yet another buyer who has told me they love the house and they want to buy it.  The challenge of course is getting someone who can actually qualify for a mortgage. With the banners and bandit signs you get lots of calls from totally unqualified prospects. (Sort of the wild wild west of the real estate buyers.) These buyers are sent directly to a loan officer who quickly screens them out.

One small obstacle is that FHA passed an anti-flipping rule a few years ago.  In order to do an FHA loan, the house itself must have been owned by the current owner for a minimum of 91 days before a contract can even be signed on the property. (It is the government at work, so don't ask why. Just accept the fact.)  Our 91st day is March 20 from my calculations, so even if we find a buyer, we may not be able to sign the actual contract unless they buyer is going to go with a conventional loan. My hope is that we will have a buyer by that 91st day, so that we can sign the paperwork on that date and run them quickly through the underwriting process. 

The average days on market in January 2008 for metro Orlando is 120 days, so we may have a long wait.  We don't plan on having it vacant that long though.  Even if we have to drop the price or put a lease option tenant in there.  However because this is the slow and challenging part, I will not be posting this "Flip this house" series as often as I have been.  I will only be posting new entries as something interesting or new happens with the house. (It ain't as easy to sell them right now as they might try to make you believe on TV.)

I promised to post a breakdown of the current costs for everything, so here goes.  Some of these repair costs have been lumped together because I just don't want to take the time to itemize in any more detail than this.

Closing costs, down payment                              $ 7,083.73

Utilities (2 power & water/sewer bills)                   $    107.20

Plumber - initial check & repair any leaks             $      92.50

Air-conditioning service & cleaning                       $    230.00

Roof repairs                                                     $    747.00

Rebuild exterior chimney                                   $    621.00

Exterior work (siding remove,stucco,paint,etc.)     $  3,121.47

Interior demolition work & trash out                    $     800.00

Repair both baths (tile,durarock,fixtures,etc.)      $  2,393.26

Electrical work                                                  $     750.00

Interior work (painting,texturing,fixtures,etc.)      $  4,955.70                                              

Kitchen cabinets & countertops                           $  2,255.91          

Kitchen appliances                                            $  1,442.02

Final plumbing work(appliances, baths, kit. sink)  $    440.00

Landscaping                                                     $    214.27

Professional cleaning                                        $    150.00                                                 

Orlando Sentinel for sale ad                               $    190.75

February mortgage payment                              $    896.44

Total costs as of today                                      $26,391.25  

1st Mortgage                                                   $98,000.00

My total cost                                                  $ 124,391.25

If for some reason my math is in error, please forgive me.  It's been a long day.          

Until next time ...

Flip this house - Post #1     Flip this house - Post # 2     Flip this house - Post #3    

Flip this house - Post # 4     Flip this house - Post #5     Flip this house - Post # 6  

Flip this house - Post # 7    Flip this house - Post #8     Flip this house - Post # 9  

Flip this house - Post #10 

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(Copyright © 2008. Sand Dollar Realty Group, Inc. All rights reserved.)

Rob Arnold, ABR, CPL, CRB, GRI, Managing real estate broker, Licensed mortgage broker, Notary Public

407-389-7318 / 1-877-389-7318    http://www.sdrhouses.com/    http://www.webuyhousesflorida.com/

Your full service and investor friendly Realtor in Orlando. Learn to invest in Central Florida real estate and Orlando real estate. Investor mentoring and counseling available. I also provide flat fee MLS listings, For Sale By Owner, and menu-based services in most parts of Central & South Florida, the Space Coast, and the Treasure Coast including Orlando, Tampa, Miami-Dade, Fort Lauderdale, West Palm Beach, Ocala, Volusia, and Brevard.

We buy houses cash, sell properties, and list properties in Central Florida including Orlando, Winter Park, Maitland, College Park, Ocoee, Winter Garden, Apopka, Pine Hills, Altamonte Springs, Casselberry, Longwood, Winter Springs, Oviedo, Lake Mary, Sanford, Deltona, Debary, Deland, Daytona Beach, Melbourne, Mount Dora, Eustis, Leesburg, Clermont, Kissimmee, Saint Cloud, Davenport, Winter Haven, Lakeland, and more.