TIME TO "REHAB"? Help me please...

By
Home Inspector with H.I.S. Home Inspections (Summit, Stark Counties)

Usually, in the past, I have always had at least one house that I would buy in the late fall, and work on through the winter (rehab) and then sell in the spring. But, of course, the last year and a half has not been such a good time to do this anymore, so, I skipped last year, for fear that I would not be able to sell the house once I restored it to near perfect condition. That was the advice of most of the local realtors I talked to... last year.

Now, that time to make a decision is upon me once again, and I am getting differing opinions about whether or not the time is right. So what do you say, fellow Active Rainers? Is the timing again right to take the plunge? If I pick my house, my neighborhood, and get a good price, and do a A-1 rehab on the house....WILL I BE ABLE TO FIND A BUYER? (The houses that I generally do are in middle income areas, where the majority of the qualified buying pool has dried up).

PLEASE LET ME KNOW WHAT YOU THINK... ESPECIALLY IF YOU ARE A REALTOR> OR HAVE INVESTING/REHAB EXPERIENCE????

Kevin (don't want to be a landlord) Corsa

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Rainmaker
67,128
Kevin Corsa
H.I.S. Home Inspections (Summit, Stark Counties) - Canton, OH
H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector

Come on now, don't be afraid to let me know what you think? I really need help deciding on this???

Sep 14, 2008 10:25 PM #1
Ambassador
1,335,114
Charles Buell
Charles Buell Inspections Inc. - Seattle, WA
Seattle Home Inspector

Kevin, I think you will be OK if you the house has a full on, unobstructed view of Lake Erie:)  You do have some really high hills there don't you?

 

Sep 15, 2008 01:31 AM #2
Rainmaker
67,128
Kevin Corsa
H.I.S. Home Inspections (Summit, Stark Counties) - Canton, OH
H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector

Charles, almost all of the "hills" are in southern Ohio, not around here. And Lake Erie property on the lake is prime real estate and generally big bucks, and 45 min away from me.

Sep 15, 2008 01:35 AM #3
Rainmaker
197,582
Cheryl Willis
RE/MAX Solutions- OZARK MISSOURI - Mount Vernon, MO
MO Broker - Mt Vernon, Monett, Aurora, Barry & Law

I think the answer is who are you speaking with.  If it is an agent that sells flips, or sells the price range, than do it.  I have several that are in different stages and plan to have buyers lined up for each.  The key is to have a handle on the buyers for each price range and have product available when lending is available.  I like to have at least 3 potential buyers in mind before committing to a re-do.  Good luck, do you want me to refer you to someone in your area?  I have this awesome network of peers so I don't mind assisting in finding an agent for you.  be good  cw

Sep 15, 2008 02:58 AM #4
Ambassador
1,199,099
Ellie McIntire
Ellicott City Clarksville Howard County Maryland Real Estate - Ellicott City, MD
Luxury service in Howard County & Catonsville

In our market it's a great time to buy. Even better if you can afford to sit on it as a rental for a couple of years instead of selling it right away.

Sep 15, 2008 03:09 AM #5
Rainmaker
67,128
Kevin Corsa
H.I.S. Home Inspections (Summit, Stark Counties) - Canton, OH
H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector

Cheryl, thank you for the comment and the offer for the referral. I have several agents here who I use, talk to and trust. It's just a dicier game we are playing now than before, especially in this locale. Potential buyers has never seemed to work out well for me, because most of them need a house now, and are not willing to wait the 3-4 months that I usually take to complete a house (I'm slow about it).

Ellie, see that's the problem... I DON"T want to rent or get "stuck" with it, just want to rehab, sell,  and move on to the next one.

Sep 15, 2008 03:22 AM #6
Rainmaker
197,582
Cheryl Willis
RE/MAX Solutions- OZARK MISSOURI - Mount Vernon, MO
MO Broker - Mt Vernon, Monett, Aurora, Barry & Law

Kevin, the offer for referral is tongue in cheek, I KNOW you know a lot of great agents to work with.  The concept is let several know this is a work in progress and you will list/sell with who ever chooses to be most aggressive with working with you.  The one I am doing now, I have told other agents the seller isn't listed, they won't waste their time unless he lists with them, but they won't even call him to find out- you have to think outside the box sometimes.  I have a couple of investor types that say they want ABC and who ever finds it they will buy from, it doesn't hurt my feelings if I miss one.  But I know of agents who refuse to work with them b/c they are not exclusive.  I forgot what my point was-  good luck  cw

Sep 15, 2008 03:39 AM #7
Rainmaker
53,133
Christina Moock
Cutler Real Estate - Canton, OH
REALTOR - Cutler Real Estate

I'd do some research on the neighborhood before buying a house to flip.  How many homes have sold, what is the average days on market, how many are listed etc.  You should be able to get a better picture of what is really happening by doing some research.  I think it would be a good investment as long as you do your homework first.

Sep 15, 2008 03:58 AM #8
Rainmaker
179,897
Jack Gilleland
Home Inspection and Investor Services, Clayton - Clayton, OH

Oh come on Kevin jump in, I did. Went to tax sale and picked up a beaut. I asked somewhat the same question as you and got similar answers.

http://activerain.com/blogsview/668866/What-to-Do-What

If it doesn't sell then I'm landlord business time 5 instead of 2. Good luck with whatever you do.

Jack

Sep 15, 2008 08:44 AM #9
Rainer
639,083
Carl Winters
Canyon Lake, TX

If you were in Texas I would say yes, that is if you could buy it right, keep repair cost down and give yourself a little more time to sell. I have been doing allot of foreclosure inspections lately and they are getting some good buys. Now, some are in my opinion junk but a few are nice.

Sorry I could not be more helpful since I am not familiar with your market.

Keep us informed.

Sep 15, 2008 09:14 AM #10
Rainmaker
67,128
Kevin Corsa
H.I.S. Home Inspections (Summit, Stark Counties) - Canton, OH
H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector

I used to be in the "landlord business" 10+ years ago. In fact, at one time I had 33 units. Wow, what a nightmare! I decided a long time ago to sell them all and never get into that whole scene again... chasing rents, fixing toilets, fielding complaints, showing & renting units, fixing them up once tenants left them in disrepair, going to court for evictions procedures...yada yada. 

I had enough of that, and now (I guess you could say I'm spoiled), but I only want the sweet little deals where there is this one neglected little house, on an otherwise near perfect street, which desperately needs some TLC, updating, and some visionary staging, so that it sells quickly, to a deserving client, with a tidy profit....sheesh... is that too much to ask?

 

 

Sep 15, 2008 10:41 PM #11
Rainmaker
204,468
Margaret Mitchell
Coldwell Banker Yorke Realty - York, ME
Seacoast Maine & NH Real Estate

Well....  When you do decide, don't keep us in suspense, Kevin.  I was on the fence on this one but lean towards doing it IF the numbers really look good.  If the nubers are kind of neutral, take a pass.  My two cents.

Sep 18, 2008 10:39 PM #12
Rainmaker
67,128
Kevin Corsa
H.I.S. Home Inspections (Summit, Stark Counties) - Canton, OH
H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector

Thanks Margaret, I pretty much have the same feelings about it. Very few homes even get on my radar screen these days.

Sep 18, 2008 10:55 PM #13
Rainer
58,179
No Longer Active in Staging. No Longer Staging
Hickory, NC

Hi Kevin, Well, I am not a realtor so I don't have much advice for you.  I am with you on not being a landlord - although I am but mostly in a different way.. We do have one rental house here and thank the LORD we have a wonderful Section 8 renter that we know-she's been there about 5 yrs!! Now, we have several vacation rental homes that I manage and THAT is a whole 'nother ball game.  I really enjoy that "landlord" job most of the time and the return is much greater than a standard rental.  Now, since you are 45 minutes to Lake Erie do you think you could do a nice vacation rental?? It can be very rewarding ;-) God bless you on your decision.

Sep 19, 2008 03:36 AM #14
Rainer
478,183
Not a real person
San Diego, CA

Just because you buy a house and renovate it doesn't mean you then have to sell it. The market here is bustling with property investors snapping up properties, renovating them, and then renting them. The rental market is growing because people are being forced out of their homes on short sales and foreclosures. They have to go somewhere.

Oct 02, 2008 04:00 PM #15
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Kevin Corsa

H.I.S. Home Inspections, Stark & Summit County, OH Home Inspector
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