Before and After House Flip That Took 16 Months! Flooded, Foundation Issues, and More!
Вставка
- Опубліковано 16 лип 2024
- This flip was supposed to be a nice easy one! Just some paint, a roof, and some other minor repairs. However, it turned into a nightmare pretty quick! The house was flooded by the tenants, we had foundation problems, the lot was smaller than I thought, and we had to replace the kitchen twice!
I bought the house from the MLS for $155,100 with section 8 tenants in the property. We let them stay for a few months to close out their lease and then we gave them 60 days notice that they needed to leave. They were not very cooperative and we did not think they were going leave, but they did! The problem was they did not tell us they left, they left all of the windows open in the middle of the winter, and turned the heat off. The pipes froze and the home flooded. We had to replace the kitchen, flooring, and a bunch of drywall that we were hoping to save!
I realized when I put this video together I forgot the $1,700 water bill that we had to pay in the expenses, but I also forgot to mention the rent that we received from the tenants as well. They pretty much even each other out so I decided not to redo the entire video.
We got the house fixed and put it on the market. It went under contract and the buyer's inspection said the foundation was bad. We had an engineer and concrete company look at it and they said it would take $84k to fix it! I knew this was a horrible bid so I found another concrete company and they came back with a bid of $5,000. Guess which company we went with? While doing the foundation work we also found that the kitchen was installed wrong and one of the drawers would not open so we had to redo that as well.
We sold the house after all of these issues 16 months after we bought it which killed our budget. We would have made a decent profit had things gone somewhat right but with all of the issues, we lost about $10,000. It could have been much worse considering everything!
We will keep flipping houses and this year looks to be much better year than last year already! We had some crazy situations last year but we got through them and we should have some much better before and after house flip videos coming up soon!
Join the InvestFourMore Insider to get access to Insider-only AMA's, podcasts, newsletters, and advanced real estate calculators investfourmore.com/insider/
----
The best way to get in contact with me is through the Insider. I answer any question asked there. investfourmore.com/insider/
----
The Complete Blueprint - Rental Properties, Flipping, Ect. - Direct Access to Mark investfourmore.com/blueprint/
My books: amzn.to/2VGI6a9
----
Mark Ferguson’s purpose is to help as many people as he can become financially free through real estate.
Mark has been a real estate investor and real estate agent since 2001, after graduating from the University of Colorado. Mark has flipped over 180 houses and routinely flips 20 to 30 houses a year. Mark owns 20 rentals properties as well including a 68,000 square foot strip mall. Mark is the managing broker and owner of Blue Steel Real Estate. Mark is also a member of the Forbes Real Estate Council.
Mark started InvestFourMore in March of 2013 to discuss his rental property investing techniques. Mark expanded InvestFourMore to talk about his flipping business and real estate agent business. InvestFourMore now has 300,000 views a month and is one of the top real estate blogs.
----
Instagram: / investfourmore
LinkedIn: / markfergusonnrba
Twitter: / investfourmore
Facebook: / investfourmore
Website: investfourmore.com/
House Flip Before and After Playlist: • Complete House Flip Be...
Lenders and Funding Resources: investfourmore.com/resources/...
----
Subscribe to my newsletter for updates and sales: investfourmore.com/yt/
Big of you admitting you messed a deal up. Real integrity move Mark. You'll never see this new breed of fake real estate gurus say something like that. And thanks again for not showing the stuff you sell down our throats.
have you seen my books? Just kidding,. :)
I love that you're so incredibly honest. For anyone wanting to get into this business or anyone wanting to get better at it they NEED to watch your videos. You're giving away so much valuable information for free. I hate that you lost on this flip but the house is so much better because of you. I know it doesn't pay the bills but that's such a great thing for a neighborhood.
Thanks!
Thank you Mark for NOT becoming a CORONAVIRUS Reporter during the Pandemic. Every other Flipper has suddenly become a News Reporter and an EXPERT on Stimulus Checks. Not You, (Or Me) we have stayed true to our channel purpose. Thank you for that!
Just wait for the next video! haha just kidding. I do talk about corona virus and how it affects me
Hahaha, that's crazy funny.
Corona ànd stimulus experts.
We have enough of those, as it is.
This is refreshing to see someone sharing the bad side of flipping. I'm sick of HGTV acting as if the flippers they feature just figure out a way to make money every single time. Plus, they never share all of the costs. That's one aspect of those shows that I've always been annoyed by.
Hi Mark, wow, so much work! The house looks very, very nice, like all your flips, and not only that, you make the homes over right. Anyone moving into one of your flips should be confident that your company did the work necessary to make their investment solid. As always, thumbs up!
They know how to manage their contractors and plan to be in real estate for a long time.
Thanks so much
We bought a house with an inground pool, turns out it has two water meters. There's an additional water meter on the garden water line (to the pool). The city deducts the water usage for the pool from the sewer bill (as clearly the water is not returning to the sewer system when it's going into the pool). First time I've seen this, thought it was cool.
I love when u post complete before and after a like this one!
thanks!
Mark Ferguson - InvestFourMore your very welcome
The 80k for the foundation is the "I don't want to do this job" price.
No, that was the I bet these people won't get another bid price. That was a big company and that is what they specialize in
Great vid mark I think this is the realist flipping vid ever
Probably wouldn't never make on HGtV or diy
Thanks again for being totally transparent
Glad you enjoyed it
Thanks for the full disclosure, people need to see this. My family is in commercial construction and there are a lot of costs that a lay person does not know.
Unfortunately I've had nothing but problems with section 8 people. You can make maybe an extra $100 or $200 per month from the subsidies, but when they move out, they cost you an extra $5,000 in repairs.
I have never had a section 8 renter in a property I kept as a rental
Yesterday I was just about to complain that the video suddenly stopped, but you were faster :)
haha someone else did!
I've built new homes and the nice things is you don't have to pay property taxes till the year after you finish it.
Thanks for your video's. I like the current
ones so much. 👍
Glad to hear that!
Yikes! Glad the loss was minimal. Didn't realize it's been this long! This was one of the first videos I saw after subbing to you.
Thanks for the sub!
Extremely valuable content. Thank you for sharing.
Glad you enjoyed it!
In my area, the water utility will forgive a bill caused by a catastrophic leak maybe once ever five years.
I think we tried
What I get from this: Avoid buying houses that have tenants, especially section 8.
Always get an inspection to catch large expenditures like the roof, the plumbing *& the foundation.* (maybe a separate inspection)
Avoid, at all cost, carrying a property for a long period of time.
I am sure most of this would have been better managed if you were flipping a smaller number of houses all at once. Having more projects at once is harder to manage & things will inevitably fall through the cracks but having more projects going at once also brings in alot more capital. Required for growth. You may need another project manager, if you had one you could also maybe double your flips or even open up to a new market. Just spit balling a bit.
or just do less haha
Section 8 is great from rental property’s
Ígpiitt
What a nightmare!! I guess you found the disappearing contractor once he filed for unemployment. What nerve. House looks good, didn't get to see the back porch, but glad it finally sold.
thanks!
For being section 8 tenants, those people had valuable stuff. Look at all the vehicles, tires, wheels, etc. They had money for what was important to them and it wasnt rent.
That was straight pure education thanks a lot Mark!! Maybe a mastermind session coming soon??
maybe..
Thanks for this video! 🤝
No problem 👍
Sorry you had so much trouble
We will survive!
Mark i watched entire video waiting for the haircut reveal... i hand it to you with all the content on your page. We've only shot 4 episodes of Busted Cribs and it's a ton of work. Thank you for being a pioneer in rei video. I get a lot out of you sharing your costs/ numbers.. Justin
haha. thanks! These videos take a lot of work but the walk throughs are easy
It came out cute...nice work!
Thank you! 😊
My 33 acres with a house is 7 dollars a year property tax
where?
Sawmiller Smith that is incredible. Where do you live, Siberia?
haha
@@susanlester1 close,West Virginia
Thank You for the video, the experience was awesome. Makes me realize to look for the positive. I am going to join your Investfourmore. I appreciate the honesty.
Great content -What are some things I need to look for on possible foundation problems that are visible and not so apparent?
big cracks and sloping water intrusion
Those floors were really nice to. What makes people do stupid stuff anyways?? That's down right evil. Tyfs God bless you
on the outside its a odd looking little house, but on the inside its looks quite comfortable
It sure does.
Strange looking place. If you owned it and had money. It would be an easy fix. Adding more room, and patio/decking undercover, double garage, fencing etc.
Well this was a bummer.
You can take to loss on taxes also so perhaps a small bright side. It still looks great sorry about the loss.
true
Hey Mark these people are financially unable to probably move all their stuff out that's why they needed rental assistance and depending on how decent a guy you are some tenants might not want to leave you with a mess not everybody can afford fancy cars. Mark a couple dollars all you have to do is buy the foam pipe insulation the ones with the slit in them would have saved you thousands of dollars
God bless you...that hurt in so many ways. But that is the 'tax' you pay sometimes...just sorry that it happened to you. Yes, go with flips from higher value properties - might avoid Section 8 that way, although, as you said, good and bad at all levels. I just shake my head at some people and wonder what they are thinking.
So true!
That's a lot of stuff to deal with! #HC
As we say in the Midlands uk.. swings and roundabouts. ....win some lose some.
I like the complete before and after in your videos Mark. However the numbers don't relate to most areas.
where did you get the table and chairs from love them
the stager
Cute haircut!
Thank you!!
That house could be bought for $45,000 in my part of the country. You are crazy in my eyes. Just crazy. Why do you put so much out? You could make $100k here on that.
I totally agree, makes no sense to me either.
Yuppers, my son's house in South West Virginia way cheaper than here in Colorado. However, it is what it is!
Because its Colorado. 5 years ago it would have been worth that. But thanks to some changes and incoming corporations, Colorado has skyrocketed in home and rent prices. It is now in the 10 most expensive places to live in the US.
What would it sell for fixed up?
Why didn't you try renting the property to recoup some of your money? Thanks for sharing I'm learning a lot. I'm really interested in real estate investing, but it's hard to convince the wife to take the risk. What do you think is a better investment, renting or flipping properties?
I can feel the pain your voice. I'm sorry.
Part of the business!
I believe I would have to rethink my lender...private or not
What A Mess!!!!! Lol!!!!😂😂
Thanks for the great video. Amazing job despite all the nightmares. Too bad about the loss, but I guess that's the risk with the types and volumes or properties you buy. I would love to get into this business, having a background in construction and accounting I think I'm well suited. However, I'm young and don't have much capital and the cheapest detached home in my area is $450K. How did you first get into this business?
Glad you enjoyed it!
have you read my books or seen m y blog investfourmore?
Not all sec 8 people are bad I have a few and they are very good tenants but I have had some that where bad that is whenI started checking on there back ground..
I'd like to think they lost their vouchers, but I doubt it.
Hi Mark, what town is this?
Why didn't your insurance pay for the flooding cost? I would have expected it to pay. Isn't there some kind of flippers insurance that would cover for these totally unexpected serious problems?
we didn't file a claim because I have had a lot of claims lately
Would you have seen a better profit if you had knocked it down and started again?
no
Did you go after the former tenant for damage and clean out costs?
Usually not worth it
That kitchen in Florida would be under $1,500 with installation
with appliances???
Mark Ferguson - InvestFourMore no lol. Just the cabinets and countertop. It’s amazing the deals people can get in FL. House looked great!
Any reason you didn’t refinance at 25% equity with a normal interest rate and throw it up for rent for a few years?
It would rent for $1,400 a month maybe and not cash flow
Mark Ferguson - InvestFourMore fair enough, that’s the opposite side of the country as me (:
Not to mention the risk of a new tenant damaging the property, costs involved with a future eviction, etc. I feel bad for people holding rental properties these days. They have no rights compared to tenants. My in-laws just sold all of their rentals because it wasn't worth it anymore. Which makes it even harder for young folks just starting out to find an apartment.
Why didn’t your insurance cover the flooding repairs from the burst pipe?
I had one in a rental a year and a half ago and they covered 30k worth of damage plus lost revenue.
What insurance company do u have because I had that happen with a tenant and my insurance said not covered
I was worried about too many claims and we didn't think the damage was that bad at first
Tint Time Nationwide on that one
Does your home owners insurance cover the damages the tenants did?
It would have if I used it. I did not know it was as bad as it was and I didn't want another claim
@@investfourmore Thank you for responding. 95% of my questions to other sites never get answered. Thanks.... I learning a lot. I have the skills to do the work just need to figure out the $$ side. I lost out on a super flip last year I could have made $125,000 profit. With little work.
Because I didn't have the financing in place & I'm a single women.
Did the pipes burst because the electric was off?
yes because that made the furnace not work
They sure have a lot of nicee stuff fir section 8.......
usually do!
Yikes
You talk more about difficult flips. As a result, we have a bias thinking that almost all your flips are nightmare. Can you show some statistics: usual flips/flips with some problems/nightmares
Those are the most interesting haha
/
The good news is your were able to gt a haircut, so there's that...
exactly
23:35 Where the green(ish) pick up truck is in the window to the right, and the end table is in the corner with a picture hanging on the wall above that table, and there's like a plant underneath that window in the living room ............... that would have been the perfect place to put / hang a TV (at an angle in the corner), as the new owners. The living room and the kitchen and even the room at 23:41 - 23:42 would have a good view of the TV.
So, the lenders are the ones who require insurance on the house. I remember once asking if the state of Colorado was the one who required that.
I remember this house because of the foundation part.
I suspect that the next real estate agent will have better luck selling and profiting on this house, now that everything that happened already happened. It's unfortunate that you are not the next one. I guess timing is also a factor at whether an agent makes a profit. Because, if another agent had been the one to buy this house when you did, THAT agent would have gone through what you did with this house, instead of you. Then maybe you would have been that "next" agent after that.
I bet that house cost $15k new
IN 1960 maybe
Never rent to section 8 people
I didn't, it came with section 8
With how much money you've made over the past few years, why not self finance your flips? 9% is a decent return in this market, shame to give it away if you dont have to.
we have up to 20 at once!
Orange Man Bad...Mark Man Gooood