Author Topic: HUD HOMES or House Flipping in General  (Read 3568 times)

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Offline chewbacca5000

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HUD HOMES or House Flipping in General
« on: May 24, 2017, 05:23:14 AM »
Does anyone here buy hud homes or flip houses in general?  Looking to get a hud home or regular house to flip and it seems like the competition is tough.

Looking for some tips to better my odds.

Offline Duke McDukiedook

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Re: HUD HOMES or House Flipping in General
« Reply #1 on: May 24, 2017, 06:43:34 AM »
You would be better off renting out than flipping in this economy for lots of factors I don't care to wade into in this thread.
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Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #2 on: May 24, 2017, 06:49:52 AM »
You would be better off renting out than flipping in this economy for lots of factors I don't care to wade into in this thread.

Hmmm, interesting.  Are you a landlord yourself?

Offline Duke McDukiedook

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Re: HUD HOMES or House Flipping in General
« Reply #3 on: May 24, 2017, 07:10:20 AM »
Hell no. Don't want or care for the frustration involved with being a landlord.
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Offline BomberMann650

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Re: HUD HOMES or House Flipping in General
« Reply #4 on: May 24, 2017, 04:17:42 PM »
There should be an MLS or hud/foreclosure list available from your local realtor.

House flipping works in some communities.  It just sucks that renovations are expensive and time consuming.  And if you go too over the top you lose your ass.

Offline eigenvector

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Re: HUD HOMES or House Flipping in General
« Reply #5 on: May 24, 2017, 05:34:28 PM »
Or you go super cheap and drop a huge stinky pile on the next owner - and make off like a bandit.
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Offline Don R

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Re: HUD HOMES or House Flipping in General
« Reply #6 on: May 24, 2017, 10:49:08 PM »
 The market here is cheap and qualified buyers hard to find. My wife sold a million dollars worth one year and I think every one was under $40K.
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Offline Duke McDukiedook

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Re: HUD HOMES or House Flipping in General
« Reply #7 on: May 25, 2017, 07:08:46 AM »
Or you go super cheap and drop a huge stinky pile on the next owner - and make off like a bandit.

That's the main reason I would not want to flip, plus the fact that when I buy a house to plan on living in that house for at least 10 years or more.
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Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #8 on: May 25, 2017, 03:17:11 PM »
The market here is cheap and qualified buyers hard to find. My wife sold a million dollars worth one year and I think every one was under $40K.

Is your wife a realtor?

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #9 on: May 25, 2017, 03:18:31 PM »
Got my eyes set on this one.

https://syracuse.craigslist.org/reo/6136315411.html

Now that the supply of CB750s has all but dried up in my area I think I got to find something new, why not house flipping?

Offline BomberMann650

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Re: HUD HOMES or House Flipping in General
« Reply #10 on: May 25, 2017, 06:17:47 PM »
Got my eyes set on this one.

https://syracuse.craigslist.org/reo/6136315411.html

Now that the supply of CB750s has all but dried up in my area I think I got to find something new, why not house flipping?

Thats a cutie.  But i doubt they got the dimensions right.  Unless 65x100 is the lot size?!

Only predictable issues I foresee there are typical age related, and the siding might be trashed behind all the vegetation.

Offline 74cb750

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Re: HUD HOMES or House Flipping in General
« Reply #11 on: May 26, 2017, 02:42:11 AM »
Good luck. I've known a few house flippers; both lost their shirts. Didn't know what they were doing and hired all the construction out, which cost them more than the market would bear.

Do your research. You don't want to be selling a $200,000 house in a $80,000 market.
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Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #12 on: May 26, 2017, 10:10:59 AM »
Good luck. I've known a few house flippers; both lost their shirts. Didn't know what they were doing and hired all the construction out, which cost them more than the market would bear.

Do your research. You don't want to be selling a $200,000 house in a $80,000 market.

One benefit of working on CB750s is that I have had to up my mechanical / construction ability quite a bit.  I learned how to do a roof by building a shed for my 750s.

I look for houses with a good roof, vinyl siding and and have good bones.  Then do the floors and paint.  Most people are so mechanically/construction challenged they don't even know how to hammer a nail.  Buyers are willing to shell out the cash for some that is pretty and all sparkly too. 

If I can get paid $20 to $30k for a good clean and paint it is not that bad.  Some people go crazy with the whole granite countertops and all that BS.  What I am finding is that if everything is clean and relatively modern and in good working condition that is enought to get it sold.

One guy did the whole open floor plan, bought it for $48k, put another $15 into it and asking $140 on a cape code.  I doubt he will get that.

Offline Duke McDukiedook

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Re: HUD HOMES or House Flipping in General
« Reply #13 on: May 26, 2017, 11:27:29 AM »
If you do get serious the most important things on a house is the condition of the foundation, whether or not the house has gutters and positive drainage away from the house (this is the reason for most foundation issues). Most of the other things besides the roof and chimneys are fixable for not too much money. Well, the wiring can be a no-go if it is way outdated or cf'ed up.
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Offline evinrude7

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Re: HUD HOMES or House Flipping in General
« Reply #14 on: May 26, 2017, 05:07:34 PM »
If you do get serious the most important things on a house is the condition of the foundation, whether or not the house has gutters and positive drainage away from the house (this is the reason for most foundation issues). Most of the other things besides the roof and chimneys are fixable for not too much money. Well, the wiring can be a no-go if it is way outdated or cf'ed up.

Good luck. I've known a few house flippers; both lost their shirts. Didn't know what they were doing and hired all the construction out, which cost them more than the market would bear.

Do your research. You don't want to be selling a $200,000 house in a $80,000 market.

listen to what duke and 74cb750 said.  and i'll reiterate, make sure the plumbing, electrical, roof and framing/foundation are good.  the big ticket items.  all the other stuff is trim work.  i've done a few.  unless you have cash banks these days just aren't doing construction loans like they used to.  don't price yourself out of the neighborhood on the back end.  if the house is $21K and comparable updated houses in the hood are going for let's say $121K here's how you look at it...  if you can turn the $21K house into or better than the $121K house for less than the difference their's your profit.  then you have realtor fees, cap gains, etc.  if that house has sat for a long time at $21K there is a reason.  good luck.   
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Offline scunny

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Re: HUD HOMES or House Flipping in General
« Reply #15 on: May 26, 2017, 05:36:43 PM »
Houses seem awful cheap there.
Try our market.  :(
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Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #16 on: May 27, 2017, 07:08:27 PM »
If you do get serious the most important things on a house is the condition of the foundation, whether or not the house has gutters and positive drainage away from the house (this is the reason for most foundation issues). Most of the other things besides the roof and chimneys are fixable for not too much money. Well, the wiring can be a no-go if it is way outdated or cf'ed up.

Good luck. I've known a few house flippers; both lost their shirts. Didn't know what they were doing and hired all the construction out, which cost them more than the market would bear.

Do your research. You don't want to be selling a $200,000 house in a $80,000 market.

listen to what duke and 74cb750 said.  and i'll reiterate, make sure the plumbing, electrical, roof and framing/foundation are good.  the big ticket items.  all the other stuff is trim work.  i've done a few.  unless you have cash banks these days just aren't doing construction loans like they used to.  don't price yourself out of the neighborhood on the back end.  if the house is $21K and comparable updated houses in the hood are going for let's say $121K here's how you look at it...  if you can turn the $21K house into or better than the $121K house for less than the difference their's your profit.  then you have realtor fees, cap gains, etc.  if that house has sat for a long time at $21K there is a reason.  good luck.

Thanks, really appreciate the insight.  Where I live the top end is not that great for most neighborhoods, and I don't have the cash to go into the ritzy hoods.

Did some more hunting today.  Turned up 3 that look promising for around $25 to $35.  Fixed up value would be 70 to 90k at the top end.

I had to look up and driven to dozens of houses to find these deals.  Getting better at using zillow and other sites so that helps. 

My goal is not to be a real estate mogul, just to have a paid for home, and if it goes well to do a few to build up my retirement fund.

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #17 on: May 27, 2017, 07:10:55 PM »
Houses seem awful cheap there.
Try our market.  :(

Cheap is a relative term.  Most people here don't earn a whole lot.  Taxes are high too.  Small ranch say 1,400 sq ft is $3,600 tax.  What are the prices where you live?  How much do you pay in taxes.

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #18 on: May 28, 2017, 06:34:22 PM »
My bird dogging skill are improving.  Now I only got to look at 100 to 200 houses online before finding a winner!

Had four potential flips today and two were so rough that they would need too much for a flip.

The $21k house might be nice for someone who wants to fix it up over time.

The other one the real estate agent's dad had a heart attack.  This is really fun looking at houses.

Reminds me of when I would drive around and scope up Cb750s at deep discounts.  Those days seem to be gone.  A deal now is $1k all day with most of the parts on the bike.

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #19 on: May 28, 2017, 06:54:38 PM »

Offline BomberMann650

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Re: HUD HOMES or House Flipping in General
« Reply #20 on: May 29, 2017, 12:06:44 PM »
I am liking this one.

https://syracuse.craigslist.org/reb/6151907102.html

Government owned HUD

How do you say "restrictions"?

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #21 on: May 30, 2017, 02:52:01 PM »
I am liking this one.

https://syracuse.craigslist.org/reb/6151907102.html

Government owned HUD

How do you say "restrictions"?

Only restriction is that you got to live in it for a year before selling.  It used to be three years.  I probably could live in a haunted house for that long for a good enough payday.

Offline BomberMann650

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Re: HUD HOMES or House Flipping in General
« Reply #22 on: May 30, 2017, 04:28:07 PM »
I am liking this one.

https://syracuse.craigslist.org/reb/6151907102.html

Government owned HUD

How do you say "restrictions"?

Only restriction is that you got to live in it for a year before selling.  It used to be three years.  I probably could live in a haunted house for that long for a good enough payday.

The ad made it sound like you were expected to run it as a section 8 rental.

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #23 on: May 30, 2017, 07:27:56 PM »
I am liking this one.

https://syracuse.craigslist.org/reb/6151907102.html

Government owned HUD

How do you say "restrictions"?

Only restriction is that you got to live in it for a year before selling.  It used to be three years.  I probably could live in a haunted house for that long for a good enough payday.

The ad made it sound like you were expected to run it as a section 8 rental.

Nope, not my cup of tea.  Not all HUD homes are slum houses.  Some area really nice. 

Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #24 on: June 01, 2017, 07:16:06 AM »
The goal is for me to no longer have a mortgage to deal with.  Learned that selling and buying houses is expensive.  Anyone have thought on how I can trim closing cost and commisions.

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Re: HUD HOMES or House Flipping in General
« Reply #25 on: June 01, 2017, 09:48:41 AM »
The goal is for me to no longer have a mortgage to deal with.  Learned that selling and buying houses is expensive.  Anyone have thought on how I can trim closing cost and commisions.

Buy owner direct?  Finance with credit unions if you must?

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Re: HUD HOMES or House Flipping in General
« Reply #26 on: June 01, 2017, 09:55:59 AM »
Study for the real estate license and pass the test. You will need that basic knowledge to understand the legal contracts you will be signing to buy a house. Either that or get a JD.
You can really screw yourself if you don't understand the terms of the contracts you will be signing if you want to bypass realtors.

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Offline flybox1

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Re: HUD HOMES or House Flipping in General
« Reply #27 on: June 01, 2017, 12:53:13 PM »
+1. 
get your own lic, or have the sellers agent represent both parties at a discounted rate.
Understand that this has its own inherent risks.

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Offline chewbacca5000

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Re: HUD HOMES or House Flipping in General
« Reply #28 on: June 02, 2017, 03:52:06 AM »
Study for the real estate license and pass the test. You will need that basic knowledge to understand the legal contracts you will be signing to buy a house. Either that or get a JD.
You can really screw yourself if you don't understand the terms of the contracts you will be signing if you want to bypass realtors.

That is some good advice.  Thanks!