Your House Auctions

Chatham Village Condo for Rent

2009-09-17T12:25:00.000-07:00

Great Condo in Chatham Village for rent again. Previous tenant was evicted by the D.A. for improper conduct. So, I need to fill it. Only $795 a month.

Memphis House Values

2009-07-09T20:19:00.000-07:00

I bought a house on Kaye Road near Eastgate Shopping center in 2007 for $90,000, spent $10,000 on it and sold it for $118,000 6 months later. That house is now worth about $120,000. Another house I bought near the University of Memphis in 2006 for $60,000 and put in $10,000 I sold for $86,500 at the peak of the sub-prime bubble. That house is now worth...get this...over $100,000! Why did the "cheaper" house appreciate more than the "expensive" house? Location, Location, Location! The houses near the University seem to be always more desirable because there is a steady stream of students looking to rent and parents wanting to buy regardless of the economy and interest rates. The moral is to invest in areas that are near University and in stable neighborhoods.

Is your propery appreciating or depreciating?

2009-07-09T20:13:00.000-07:00

Just for laughs, I checked the Zillow prices on a few houses I bought and sold. One house in Nashville I sold bought for $53,000 and sold in 2004 for $105,000 has appreciated to $175,000! In less than 5 years, it has increased in value over 75%! This house is located in West Nashville at the edge of Belle Meade and Hillwood. Another house I built for $240,000 and sold in 2 years for $318,000 has depreciated to about $275,000. Why did one go up and one go down? Location. The larger, more expensive house is near Bellevue, which is about 20 minutes from downtown Nashville and there has been a lot of new construction out that way. Whereas the older house built in 1954 is in an established neighborhood where there is no new construction. What that teaches us is that for value, it pays to invest in stable neighborhoods.

Great Deals Are Everywhere

2009-03-11T17:52:00.000-07:00

Can you believe that houses in Detroit are selling for as low as $1000? I saw a picture of an $8000 house that only needed about $4000 in work that looked like it would rent for at least $1000 a month. Here in Memphis, there are plenty of great deals. Look at this one that is available for only $55,000. If you are interested, let me know.

Let Me help you invest in undervalued markets~~

2009-01-04T18:24:00.000-08:00

I am pleased to annouce that I now have readers in 63 countries! I am working with several owners to find investors looking to increase the depth of their real estate portfolio. I have access to foreclosure and short sale properties that you may be interested in. Please let me know what your budget is and I will put together a package deal with units either rented or empty that fits your investing strategy. I am working primarily in the Memphis and North Mississippi markets where most investment property is selling for around $50-$60 sq. ft. and it rented for $80-$90 sq. ft. I currently have houses, condos, apartment buildings and retail space available including one restaurant location in a prime area. Interest rates are low and inventory is high. Let me know what you want readers in 63 countries! Call me or email me hear. 901.692.0645 is my direct line or email me at dgold@yourhouseauctions.com.

Dropping Interest Rates

2009-01-04T18:21:00.001-08:00

Wow! Fellow investors. I have heard of 30-year rates as low as 4.75%! The time to buy is now. I have started looking again. There has never been a more optimal time to get back in the investing market than now. Don't expect to make money flipping as the supply is too high. You will need to buy some homes with the intent of holding onto them for at least 2-4 years. I have two properties rented now throwing off about $1700 per month with debt service of only $900. So, I need to buy more units. Finding tenants is easy. Just try craigslist or a for rent sign in front of the property. Good luck and let me know what you get.

Investor Property Purchase Consulting

2008-08-13T09:37:00.000-07:00

I now work with Pyramid Realty in Memphis to offer help in finding investment property for your portfolio. For a flat fee instead of a percentage commission, I will assist you in finding property and give you a price for fixing it up. Whether you want a turn key investment or a project, call me for guidance.

Services Offered by Your House Auctions

2008-08-13T09:33:00.000-07:00

So many people have been asking me how I can repair, remodel and restore my propery at such a low cost, I am offering this service to the general public. I am an account executive for Superior Remodeling, a Licensed Contractor. We can help you repair or replace roofs, put in new flooring including acid washed concrete, hardwood and tile. We can remodel a bathroom or kitchen and take on just about any project you have. You have seen the quality that I have done. Now you can have the same for yourself at an affordable cost. Call me for more information. 901.692.0645.

New Vinyl in Bathrooms After

2008-07-22T19:57:00.000-07:00

Here is the new vinyl in the bathroom.

New Vinly Floor in Baths

2008-07-22T19:56:00.001-07:00

This is a picture of the old nasty vinyl.

New Carpet adds Value

2008-07-22T19:49:00.000-07:00

As you know, I purchased a condo this month with the intention of either renting it or selling it. Well, I decided that it would do better with fresh carpet and while I was at it, I went ahead and replaced the flooring in both full baths upstairs. After shopping around, I decided on Lowes who offered me no interest and no payments for 12 months. I purchased 907 sq. ft. of carpet with new pad installed for $1600 including tax. The vinyl in the bathrooms added another $500. So for $2100 I got new floor covering in all rooms that did not already have the Mexican tile. Also today, I rented the unit for $850 per month. So after expenses I will profit $200 per month on this property. I still will market it for the purpose of trying to sell it, but in the mean time, I have a renter who is buying me a condo and giving me gas money! The first picture shows the old carpet and the second shows the new.

Rising Rents

2008-07-07T09:19:00.000-07:00

As more and more people are being forced out of their houses, I see an interesting trend in rental prices. They are increasing. Supply and Demand dictate what rent can be charged for a property. With so many people losing their house do to foreclosure or ARMs that adjusted so high that they cannot afford to stay, people are turning to renting in large numbers. I know that a nice 2bd, 2ba property in a good neighborhood in Memphis should easily rent for at least $750 per month. But, since more people are looking for them, a landlord may be able to get $850 or $900 if he should make his property more attractive to the renter. I will be providing Refrigerator with Ice maker and water dispenser, Washer and Dryen in the condo, Tile floor in Kitchen along with Dishwasher and Disposal and onsite pool. The den has a wood burning fireplace also. I expect to rent my unit for $850. My note PITI and association dues are $500. I should cashflow positive $350 per month on just this one unit. Not bad.

New Real Estate Purchase

2008-07-07T09:14:00.000-07:00

Last week I closed on a 2 bedroom, 2.5 bath condo in Cordova near Wolfchase Mall. The tax assessor has it appraised at $62,500. The seller wanted $50,000. I offered $43,000 with the appliances and she took my offer. There is the $150 association dues that seems high to me, I don't plan to have it that long. My exit strategy is two-fold. I want to replace the carpeting with new carpet and replace the old vinyl floor in two baths with new vinyl. After I do that, I will simultaneously advertise it for sale and for rent for around $900. I don't expect to get that much, but you never know. I will either sell it rented or vacant. Rented, I think I should be able to get at least $60,000. Vacant I should be able to get around $53,000. Either way I come out nicely.

860 houses

2008-03-21T09:03:00.000-07:00

According to the Memphis Business Journal, only 860 houses were sold in Shelby County in January of 2008. This represents a 35% decrease in sales in Shelby County year over year. However, that does not mean the market is stagnant, if fact, it is a great oppurtunity to pick up bargains too.

Ground Fault Outlets

2008-03-16T20:26:00.000-07:00

Ground fault outlets are those outlets with the little red reset button in the middle. You sometimes see these in hotels in the bathrooms. They prevent the outlet from shorting out in case it gets wet. These outlets cost about $7.00 and are really a great selling point when you remodel a house. Be sure to have a licensed electrician wire it in for you. I finished a house and used one in each bathroom and 4 along the backsplash in the kitchen. The purchasers really were glad that they were there as they have a 4 year old son. They don't have to worry about him dropping the hair dryer in the tub now. The internal breaker will trip before he is injured. I highly recommend you consider these in bathrooms and kitchens.

Beware of the Odd Floorplan

2008-03-16T20:21:00.000-07:00

I recently saw a house (around 2400 sq. ft.) that had an asking price of $225,000 which was below the prices of most other houses in the neighborhood. It was a 4/2 that was totally remodeled. It had two bedrooms downstairs that shared a bathroom. Upstairs were two bedrooms on opposite ends of the house that shared a bathroom. The floors were gorgeous, the walls were painted a neutral color, the interior doors were new. I know why the house isn’t selling. It lacks a master bathroom. The master bedroom shares a bath with another bedroom. Also, this bathroom is in hallway rather than connected to the bedroom. For $225,000, you would expect a master bath. Even if I could get the house for $195,000, I doubt it would sell quickly. Until a master bath is added, this house will probably remain unsold unless a very specific buyer comes around. I could imagine a single parent looking to move into a good neighborhood that wanted a “separate area” for two children to each have a bedroom. Also, there was an addition that could be used for a game room that led to the outside. If the parent did not mind going down the hall to use the small bathroom, this would be an acceptable house. But for $225,000, you would expect a master bath.

One that got away

2008-03-15T12:39:00.000-07:00

I found out that the house I bid on this week won't be added to my inventory at this time. The seller had the Agent email the following reply. "Our price doesn't include the furniture. You can tell him that I have no reason to sell that low and will not even counter. I have had some other options come up." Apparently this seller is more interested in listing his house than selling it. He had too much pride to even make counter offer. Don't let pride get in the way of your real estate investing. I feel no shame that the offer was rejected. You must kiss a few frogs before you get your prince. If every offer you make is accepted, you are offering too much.

What do we learn from this, keep playing the game, keep hunting houses and eventually you will get a good deal.

House that sold in Memphis for top dollar

2008-03-12T13:15:00.001-07:00

Here is a house that just sold for $83,500 and the tax assessor had it appraised at $65,500. Why did it sell for 1/3 over the tax assessors appraisal? Because it was redone nicely. First, it has great curb appeal. Next the interior was repainted a soft, bright, cheery creme color. New light fixtures make the interior as nice as a new house. The built in bookshelves really help also. Look at the tile floor in the kitchen. These are the cheap less than a dollar type but still look fantastic. The countertop is new but the cabinets are older but in good condition. This seller did well. I would estimate that these renovations were done for around $5000. Great job. Remember, value sells.

Question from Amy

2008-03-11T16:42:00.000-07:00

This question was sent to me by one of our readers.

I saw your post on craigslist and used the link to your blog on house auctions. I have a question for you. I am not a house flipper but my husband and I are only going to be living in our currrent home for 2 - 1/2 years. It's a bit of a fixer upper in East Memphis. We are trying to do the work ourselves and are planning to put in a new kitchen. My question is: Where can I get the best deal for cabinets and countertops? We may try to do that ourselves but for the right price we may hire someone to do it. I don't want to sink a ot of money into this house but the kitchen must be redone.Any suggestions for kitchen renovations without spending lots of $$$.

Great Question Amy!

I told Amy that she should consider looking at the cabinets and sink I removed from a house in Collierville that I worked on over the weekend. People are more than happy to give away their old cabinets, toilets, sinks, islands, countertops. You just have to know who to ask. Try to get in with some house remodelers and call them. Look in the yellow pages under remodeling. Call about 10 and tell them what you want. They usually will even deliver it to your house for a small fee. I highly recommend this since usually the items are free.

If that is not an option for you, I hate to say it that Home Depot has some great prices. Sure, you get what you pay for, but for what I do, custom kitchen stores cannot touch their prices. Formica is usually $10 a foot or less. Cabinets can start at $46 for a standard 18 wide by 30 tall cabinet unfinished. That works out to $2.55 plus tax per inch. So if you have a standard 10 foot wall that needs cabinets, look to spend about 120 inches X $2.55 which is $306 plus tax.

I have compared the high end cabinets like Kraftmaid and although the quality is phenomenal, you won't get that back out when you go to sell unless you are flipping houses in the $250,000+ range.

When it comes to countertops, I don't recommend Corian. It is usually more expensive than granite and is considered a step down from it. Cheap granite can be found for $40 a foot. If you are doing a countertop for a bathroom sink, it may be worth it to get a 2 foot piece for a bathroom. Granite really does look rich. If you want to set your flipper houses apart, some granite can really do the trick.

My Latest Offer on House

2008-03-11T16:29:00.001-07:00

I put an offer in on a 3/2 yesterday. The house is has decent curb appeal, as you can see. If I get the house, I can assure you that I will repaint the pink on the front a more trendy color such as beige or brown. This 1950 house is a one owner house. It has been in the same family since new. The owner passed away over 8 months ago and the house is in the estate. The executor is the son of the deceased and the house has sentimental value to him. It still contains most of the original 1950's furniture also. My bid included the furniture because it was in great shape. The walls are wood paneling and knotty pine. I personally don't like knotty pine because it is so dark, but at least it is clean. There are hardwood floors under the carpet that is perfect. This 1250 sq. ft. house with central HVAC would sell for $120,000 or more if renovated and it was in a more desirable neighborhood such as University of Memphis or Highland Terrace. Unfortunately, it is not. The asking price was $84,900 and I offered $60,000 with the furniture. The tax assessor has the house at $66,700.

I know that the agent for the seller will work hard to try to get the executor to accept the bid. This house has been on the market over six months and since I am not represented by an agent, the sellers agent can take all 6% of the commission. If another buyer was represented by an agent and the offer was $84,900, the agent would make LESS money than she would with my offer at $60,000. That is the harm in the seller getting an agent. She is now in a funny situation. I have taken away her financial incentive to refuse the deal by making a cash offer without an agent. I will keep you posted.

Cabinets and sink for sale

2008-03-11T16:23:00.000-07:00

I helped my friend remodel his kitchen this past weekend. In return I got some really nice cabinets and a stainless steel sink. There is even an island inlcuded. If you or anyone you know needs some cabinets and a sink, please see my Craigslist post in Memphis/Household. Always be on the lookout for free stuff from houses. Many people remodel their baths and kitchens and are glad to have some one haul away their old items. These will work great in a flipper house and are much nicer than most cabinets in houses built before 1960. The sink has a sprayer and water filter attached. A new sink like this with faucet would retail for at least $150. These cabinets would cost over $2000 new. Be sure to email me at dgold@yourhouseauctions.com if you are interested.

Craigslist

2008-03-08T22:14:00.000-08:00

Craigslist is good too but beware of the spam. Recently there has been an abundance of spam on Craigslist. You can usually tell the spam from the real listings by the title of the ad. Titles that are repeated with only the price changed are usually spam. You may find some great FSBO deals on Craigslist because the seller wants to advertise the property for free. Money is usually a motivating factor to use the free services rather than MLS. Craigslist usually has the address of the property also and a link to a Google and Yahoo map. You will quickly see if the property is your target area. I have sold one house to a buyer who saw my listing on Craigslist and today I found a tenant for one of my rental properties on Craigslist. I posted the rental property, a 2/1.5 townhouse in East Memphis and it was rented in 4 days. I tend to find that Craigslist attracts a higher calibre of Internet Surfer than other sites.

Selling Houses in Down Market

2008-03-05T21:28:00.000-08:00

I attended a seminar today hosted by our local newspaper. They certainly stand to gain ad sales by hosting a motivational speaker to speak to 250+ real estate agents for free. The newspaper is certainly an efficient means to reach potential buyers quickly and at once. The speaker named Joe spoke about how much of the problems sellers are having is within themselves, and not the market. He correctly pointed out that house sales are down about 15%. Which in reality, is not that big. In fact that means that there are still 85% sales intact. His speech echoes what I have been saying all along. This is not a bad market. In fact it is a great market. If you are investing in real estate, you can snatch up all sorts of deals. The key to your success is getting in contact with the right people and listening to what they want rather than trying to sell them what you have got. His marketing technique for his own house was rather novel. He took a picture of his house and added an elephant image to the front yard and a roller coaster to the back yard to emphasize the large front and back yard. I thought that was a great idea. Anything you do to make your property stand out needs to be done.

Real Estate Magazines

2008-03-05T21:24:00.000-08:00

House magazines at the grocery store can be a good source. Be sure that the issue is current. In my local market, new issues arrive on Thursday in preparation for shoppers looking for houses over the weekend. I like these free magazines because they have color pictures and the houses are grouped by area. In Memphis, I can search the three areas I like flipping pages faster than any other method. Also, I can tell right away if the house has curb appeal. Price is usually listed. The good deals will almost stand out on the pages and the duds will be obvious too. Be aware that these grocery store magazines hardly ever have the FSBO's in them since FSBO's don't usually go into MLS. These can also be great reference tools to see which part of town you would like to invest in by getting a feeling for the type of houses in an area.

Deal #10011

2008-03-03T20:39:00.000-08:00

Complete renovation in Midtown. Includes SS gas stove, refrigerator & dishwasher, large pantry. Hardwood floors. Beautiful master suite w/ huge master bath, Jacuzzi tub, walk in shower. Huge closets. 2nd bath has marble tiled shower. Fenced in back yard. Contact Briscoe Ellett (901) 282-9020. Price only $144,900.

Address: 507 Garland St. Memphis, TN 38104

Deal #10010

2008-03-03T20:34:00.000-08:00

Beautifully restored historic home in Midtown. Hdwd floors, stunning foyer, updated kitchen w/ new appliances, renovated bathrm w/ whirlpool tub. New HVAC system, new roof, new washer/dryer & refrigerator. Updated electrical & plumbing. Motivated sellers. Hardwd floors, 4 Bdrm/ 1.5 Ba, large, stunning foyer, updated kitchen w/new appliances, 3rd fl. could be 5th bdrm or study/playroom. 2 fireplaces, craftsman period woodwork, renovated bathrm w/ whirlpool tub. Contact Stanley Engelberg at (901) 496-3231 for more details.

Address:

1206 Tutwiler

Memphis, TN 38107

When purchasing, should I use a Real Estate Agent?

2008-03-03T18:04:00.000-08:00

You may want to utilize the limited services of a licensed real estate agent. I would not sign an exclusivity agreement with one, but certainly make friends with real estate agents. They can look at MLS listings each morning for you. Tell the agent exactly what you are looking for and the agent can check a certain zip code or area in a price range each day. I have an agent friend who looks each day for me and it only takes a few minutes. He emails me the listing info and then I drive by the houses. My criteria is ZIP, 3/2, under $75,000. It’s a pretty simple search and he emails me directly from the MLS site. Ask the agent to search only new listings and price changes once existing listings have been searched. The more agents who know what you are looking for, the better your chances are of finding what you want. I usually do an email blitz to a free list of local agents about once a month blasting what I am looking for. I get contacted by about 20% with some leads. They all understand that they are not the only agent looking for me and I have made some good connections this way.

What about HUD Homes?

2008-03-03T04:49:00.000-08:00

Similar to purchasing a house from the FSBO are HUD homes. HUD homes are homes that have been acquired by the U.S. Government when a homeowner with a HUD secured loan goes into default. The Government does not want the responsibility of upkeep for the house and usually liquidates these houses at auction. Contact a local HUD office in your area to find out how to get HUD houses at auction. In my area, only a real estate broker or agent can bid on the houses. I consider HUD a motivated seller because those houses are usually priced well below market value and are not on the market but a few days. You need to be quick to grab them.

Get Some Windshield Time

2008-03-02T15:28:00.000-08:00

How can I find cheap house? Get in your car and grab some WINDSHIELD TIME! The best way to find FSBO houses is driving around the neighborhood you have chosen. I prefer purchasing directly from an owner, when I can. This puts more money in the seller’s pocket and FSBO sellers usually build into their price at least 3% for a buyers agent. Right off the bat, I know they will come down 3%. Also, the FSBO seller is typically a motivated seller. The reason that they don’t list with an agent is that they would lose 6% of the money upon the sale. You have to be quick though. You are not alone in your search.

Bargain Hunting in a Down Market

2008-03-01T20:33:00.000-08:00

So how do I find the real bargains? Use your eyes, your ears and the Internet. Before I consider buying, I choose several areas where I know the market for house prices. In Memphis, I know 38122, 38111 and 38117. These are all desirable areas with homes built mostly between 1948 and 1960. Ideally, I look for houses that have 3 bedrooms and 2 baths. I research what is SELLING in today’s market and believe that buyers have so many options that there is really no reason to consider anything but a 3/2 unless you stumble on a really nice 3/1.5 cheap. When I sold my last house in January, it sold in 45 days after being shown 20 times. The only complaint anyone had about the house was that it lacked a 2nd bath. 3/2 houses are easier to rent and sell. That means that the 3/2 is more attractive to someone interested in buying your property whether they will live in it or rent it out. Among the house sales that closed in Memphis last week, 95% had more than 1 bathroom. My advice, stay away from the 3/1 and 2/1 market.

When do you make your money in real estate?

2008-02-29T21:33:00.000-08:00

I believe that an investor makes his money when a house is purchased, not when it is sold. If you don’t buy the house at a good price, you will never make a profit when it sells no matter how nice it is. So, your goal is to purchase the house for a low price. It is very easy to spend money on a house making it more marketable. Unfortunately, you may not get what you put into it back out. So, the key to making a profit is in the purchase, not the sale.

Deal #1009

2008-02-29T21:14:00.000-08:00

Great 3 bedroom 2 bath house near the water in Cape Coral. This is a growing area with a huge potential for an increase in property values. Florida will always have hot real estate. This is the time to buy. This house has over 2000 sq. ft. of living space. It is listed for only $143,900 and the comps in the area put it worth at least $200,000. You will be sorry if you don't buy this house. The address is 3841 SE 7th Ave, Cape Coral, FL 33904.

Contact:
Robert Sinclair
100% Real Estate, Inc.
1810 Lee Road
Orlando, FL 32810
Phone: (800) 454-3422

Deal #10008

2008-02-29T20:51:00.001-08:00

Invest in Sunny Bradenton, FL and make money on this investment or live there yourself. This 2/2 is cheap and desirable. I can't believe it can be bought for only $131,900. The comps in the area are in the $161,500. It has a private backyard with mature trees. The address is 4404 55th St. Bradenton, FL 34203.

Contact:

Scott Samuels Cyndi Kilpatrick
Re/Max Metro- Scott Samuels
201 2nd Avenue North
Saint Petersburg, FL 33701
Phone: (727) 896-1800

Deal #10007

2008-02-29T20:36:00.000-08:00

Here is a great property for flipping. It is a REO 2/1 for sale for only $90,200 and according to comps it is worth at least $159,000. With a little work this would make a great rental or you probably could just buy it and sell it as is. The address is 460 Utica St., Denver, CO 80204. Contact:

Shelley Ford
Remax 3000, Inc.
10375 East Harvard Avenue Ste 400
5411 S. Jasper Way
Centennial, CO 80231
Phone: (303) 696-7676

Deal #10006

2008-02-29T19:18:00.000-08:00

Here is an incredible deal. This 2/1 really has potential for a rental property. It is being offered for only $41,900 and has an ARV of $110,000. The address is 2222 Burroughs Ave SE, Atlanta, GA 30315. To find out more about this bargain, contact:

Fadi Elkhatib
Main Source Realty
2802 Crestworth Lane
Buford, GA 30519
Phone: (770) 822-5522

Deal #10005

2008-02-28T21:50:00.000-08:00

This 3/2 is a Foreclosure and is up for sale. The list price is $74,900. According to Zillow, it is worth $105,500. Other houses in this neighborhood sell for at least $100,000. It was built in 1986. The address is 1224 Oak Park Drive, Dallas, TX 75232.

Contact
Nesa Grider
First Preston Management, Inc.
5040 Addison Circle, Suite 400
P.O. Box 1029
ADDISON, TX 75001
Phone: (972) 788-1100

Deal #10004

2008-02-28T21:17:00.000-08:00

Adorable 3/1.5 in Jacksonville. Foreclosure/Corporate Owned. Listed for only $54,000. Zillow has it worth $145,000. Address is 6351 Kenny Rd, Jacksonville, FL 32254. Over $90,000 in equity. Contact:

Robert Sinclair
100% Real Estate, Inc
1810 Lee Road
Orlando, FL 32810
Phone: (800) 454-3422

Deal #10003

2008-02-28T20:57:00.000-08:00

Atlanta SFH with 3 bedrooms and 1 bath in Atlanta. Cute 1925 Bungalow with huge curb appeal. This house has 3 fireplaces, French doors, hardwood floors and a bonus room that could be used for a huge pantry. Backyard offers and elevated wood deck with rails and steps. According to Zillow, this house is worth $213,000. It is being offered for only $61,900. The address is 640 Holderness St. SW, Atlanta, GA 30310.

Contact:
Randy Watson
Remax Leading Edge
4401 Shallowford Road Ste 154
Roswell, GA 30075
Phone: (770) 374-5677

Deal #10002

2008-02-28T09:24:00.000-08:00

Not a foreclosure or corporate owned! Owner/agent offering this as is. Location, location! The best schools and neighborhood! Hurry, before owner decides to redo himself! Great house in good area. Would make great rental property. Contact David Steinberg at Eagle Real Estate at 901.763.2866 for an appointment.

Deal #10001

2008-02-28T09:14:00.000-08:00

Fabulous High Point Terrace home! Beautifully decorated & updated! Gracious LR& DR opens to cozy sunroom.Lots of custom features & hardwood! Wonderful kitchen with eat-in area in fantastic den w/ new French doors, built-ins+FP. Huge master. Asking price is $399,000. This house was just listed on 02/26/2008. Contact Mary Ruleman at Hobson Realtors 901.761.1622 to schedule a showing.

International Readers...WELCOME

2008-02-27T20:31:00.000-08:00

To all my international readers, welcome. I am thrilled to have so many people interested in making money in the U.S. real estate market. In 2003, 85 cents U.S. would get you 1 Euro dollar. Now it takes $1.51 U.S. to get 1 Euro. Basically the Euro buys almost twice what it did in 2004 in the U.S. That means that the investment property that would have cost the European investor $100,000 in 2004 only costs about $55,000 today. Coupled with the 8% decrease in U.S. housing prices since last year, this is a remarkable time for Europeans to invest in U.S. real estate. Even as foreclosures hit record levels, those people still need a roof over their head. Why not buy their houses at deep discounts and then rent them back to people who would otherwise be thrust into apartments. Let me know cities you would like to invest in and I will see what I can find.

Condo for Rent - Not Available Now

2008-02-27T14:38:00.000-08:00

I have never bought into the condo market but I am beginning to see the advantages. The worst thing is the condo association dues. Here is a condo I am helping my friend rent out. It is a 2/1.5 in a good part of town for $850 per month. It is paid for so anything he gets is better than the $350 in taxes, insurance and condo dues he is paying each and every month it remains vacant. If you know someone who wants a great condo near St. Francis, let me know.

To Buy, Sell or Rent

2008-02-27T08:24:00.000-08:00

Before you think about buying a house, ask yourself "What am I going to do with it?" This simple question will dictate your exit strategy. I seek to purchase houses for 70% of the After Repair Value minus repairs. For example, if the house should sell for $100,000 in a good market, I would look to pay $70,000 minus expected repairs. I would expect repairs to be $10,000 on this example so I would like to buy the house for $60,000. To buy the house for $60,000, I would offer $55,000 and close in 14 days cash deal. I would expect the seller to negotiate another $5000 from me thinking he got a good deal by squeezing me for $5000. If my intention were to rent the house out and I wanted cashflow immediately, I would probably be willing to analyze it differently. Let's say the property would rent for $850/month. I know that taxes are going to be $150 per month. The mortgage on a $65,000 house with 10% down would leave me with a note on $58,500. Based on a reasonable interest rate, my note would be $500 per month plus taxes ($150) and insurance ($100). So my cost per month would be $750 and my income would be $850. That's a lot of work for little money. I would not want to get into this propery at $65,000.

Renovated Kitchen in 4/2

2008-02-26T15:00:00.000-08:00

Here is the kitchen in a house that is for sale in Memphis. It is on Laurie Lane. The kitchen has been inexpensively updated. Notice how the tiles on the floor repeat the look of the tiles along the wall. This conservative approach to remodeling the kitchen will be attractive to most home buyers. Buy choosing a style and color that is easily matched, he made sure that no one will complain about the kitchen. A coat of paint over the old cabinets along with new hardware freshens them up also. The built in matching Stove, Microwave and Dishwasher put this house above many others. A small wine cooler is placed in a built in shelf to set this kitchen apart from those in other houses.

Do you count finished attic space as livable?

2008-02-25T16:10:00.000-08:00

I went to see a cute house today that is a 3/1. The good news is that it had already had a bunch of work done to it. Someone had coated the walls, trim, built in shelves and in fact every paintable surface mocha beige. All that I would do to it would be paint the trim a different color and refinish the floors. Also, for some odd reason the washer was in the kitchen and the dryer was in a bedroom. The house was built in the 1950's. The attic had been finished out as "living space" for munchkins. Not really usable for much else besides storage. However, it is "under roof" and the seller expected that to count towards the total living space for sale purposes. It was about 300 sq. ft. To me, it was a 1100 sq. ft. house. To the seller it was 1400 sq. ft. I usually analyze a house on a sq. ft. basis. So, to me, a fair price for that house would be $58 per square foot multiplied by 1100 with a deduction of $6000 for not having central heat and air for a purchase price of $57,000. The seller would take "in the mid-$60's ". That would have been a fair price had the upstairs been usable. Take a look for yourself. Being an investor, in this case, I would not include the finished attic space in my price/sq. ft. calculation. The other reason I would avoid this house is that 90% of all houses sold (not listed) in my market have more than one bathroom. The market is flooded with 2/1 and 3/1 houses a buyer can pick up a 2/2 or 3/1.1 or 3/2 for the same price.

Thinking outside the box

2008-02-22T16:26:00.000-08:00

I met with a nice couple today who are interested in a Lease/Purchase. As an investor, you cannot rule out any oppurtunity to put people and houses together. This nice couple had unusual circumstances that made it necessary for them to quickly find a house between 1900 and 2400 sq. ft. to lease purchase. The typical reasons why someone would want to lease purchase rather than buy might be lack sufficient funds for Down Payment and Closing Costs. In this economic climate where 100% financing is only available for people with credit scores over 720, many people cannot afford to buy a house. The Lender may require 5% down. On an average $150,000 house, that is $7500 plus around $5000 closing costs. That is $12,500 after tax dollars that would be paid at closing. With a lease purchase, that same individual may only have to pay $3000 deposit and pay the seller lease payments of $1300/ month or so. Also, the purchaser saves by not having to pay PMI, purchase money insurance. Lease/Purchase deals can be a win/win for the buyer and seller.

4/2 in Sherwood Forest

2008-02-22T16:23:00.000-08:00

Here is a picture of the upstairs. The plumbing pole has been painted to blend in with the walls. This large room would really make a great entertainment room because it is separated from the rest of the house. I could imagine parties up here while the rest of the house was oblivious.

4/2 in Sherwood Forest

2008-02-22T16:16:00.000-08:00

I recently met with Landra Pryor, an agent with Crye-Leike here in Memphis. She is a real go-getter. I usually don't have good experiences with agents but she is truly different. I was meeting her at a house that was reduced from $30,000 to $15,000 near Sherwood Forest, which is about a mile from the University of Memphis campus. The house had water damage and as we later found out, damage to the foundation. The house had cracked along the centter and formed a V at the midline. This was much more than I would ever want to tackle. She took me to two other houses that were in the area. One was a 2/1, but because of the way it was laid out, it was really more like a 1/1 plus a nursury. Not a good piece to buy for rental purposes. The next one in this picture she showed me was really nice. It is a 4/2 across from Sherwood School. The hardwood floors were nice, but not perfect. The interesting addition made for a great large 4th bedroom or could be used as a great gameroom/entertainment room. Contact me if you are interested.

Great House For Sale in Memphis

2008-02-21T20:00:00.000-08:00

Here is a house for sale that has been renovated from top to bottom. It is in a great part of East Memphis in safer than most neighborhood. This 4 bedroom 2 full baths house has gorgeous hardwood floors and new matching interior doors with glass panels that really accentuate the beauty of the wood. The brick veneer exterior will last many more years and is easy to maintain. I highly recommend brick when you intend to keep a property for a long time. It does not require the upkeep that aluminum or vinyl siding does. Upstairs are two bedrooms with a central bath to share. New carpet is intstalled in the upstairs and the stairwell. New tile has been installed in the breakfast room and kitchen. A bonus room entered from the side of the house is handy for muddy shoes or a game room. If you want to see this house, please contact me. Asking price is $223,000. But if you don't need help with closing costs, the seller is willing to negotiate.

More on HUD houses

2008-02-19T16:45:00.001-08:00

I found an interesting HUD house online yesterday, went to see it today. It was listed for $47,000 and I determined thought that I would offer $40,000 to buy it. I estimated the cost to repair the house would be $20,000 including adding new central heat and air. I met the neighbors. I was getting my nerve up to make my bid. When I went to the website to find out how to make my bid, the bid now button was gone and it had "Contract Pending" next to it. Apparently, I wasn't the only one who thought this was a good deal. It last sold in 2007 for over $84,000. The moral of the story is on HUD houses, be sure to check each and everyday. Be ready to submit your bid quickly because the good houses in good areas are getting snatched up quickly.

HUD Houses

2008-02-18T19:50:00.000-08:00

I went to a seminar last week on the topic of Loss Mitigation in HUD houses. The topic was how HUD can reduce the number of foreclosures using methods including tools such as Forebearance, Reinstatement, Repayment Plans, Mortgage Modification and Partial Claims. In all of these instances, the borrower is able to remain in the house. When the loss of the house is inevitable, the mortgagor can has several options to avoid foreclosure including Sale, Pre-Foreclosure Sale and/or Short Sale, and Deed-In-Lieu of Foreclosure. Not all of these result in a bargain for the investor, but they may and you should look into them. From what I have found out, HUD houses are not listed in the MLS. Their sales are generally very quick and offers in Memphis are submitted online through an approved HUD certified real estate agent. The prices of HUD homes can be quite lower than houses on MLS or FSBO because HUD does not want to hold the inventory and they really are not interested in making a profit on their repossessed houses. In fact, they are trying to mitigate their losses. Each day the house remains empty it decreases in value. My suggestion is to go to their site at www.hud.gov and see what is available in your area.

House Hunting Again

2008-02-16T14:07:00.000-08:00

I went out looking for houses again and learned a valuable lesson. If it was built in the 1920s and has not been updated, run like hell. I saw one yesterday that had a pretty front. Was a white two story with wood siding. Sort of Colonial Style. Looked about like a haunted house really with its tall windows and empty rooms. Fireplaces up and downstairs covered with painted metal sheets. The hardwood floors were at an angle downstairs indicating that the house had settled. The windows were all painted shut with multiple layers of paint sealing them. The kitchen had 1940s style cabinets with metal buttons to press to release the catch. Their shape reminded me of the tailfins on a 1960 Cadillac. Most remarkable was that there was no bathroom downstairs. There was one full bath upstairs with three bedrooms and virtually no closet space but there were some built in shelves. The house would have made a good set for a horror movie. The condition was poor but it was eerily clean inside. The plaster on the walls was falling down and held up by layers of wall paper in some places. Each room had a wall mounted A/C unit with remote control. Very odd that the previous owner would mind adjusting the temperature on the window units yet ventured up a flight of stairs each time to use the bathroom. The asking price was $148,000 and I fear that if I offered $50,000 the offer would be accepted. This house would need at least $200,000 worth of work to make it comparable to what $250,000 would buy for an equal sized house in a similar neighborhood. But after all that work, I seriously doubt there would be any profit leftover.

Appraisal Before and After

2008-02-15T20:31:00.001-08:00

When a house is purchased using a bank loan, an appraisal is always required by the lender to ensure that the property being purchased is worth at least as much as the dollar amount of the loan. This only makes sense because should the bank need to take over the property, it wants to be certain that it can sell the house for at least the amount of the debt. Be sure to hold onto this document and remember the name of the appraiser. After I finish remodeling my houses, I always call an appraiser to re-appraise the property. Generally this appraiser will perform an appraisal for marketing purposes at a reduced rate. I provide the appraiser with a list of my expenses including labor and materials. Documenting $10,000 in expenses is much better than having the appraiser guess at what you spent. Also, I provide my own comps for the appraiser. I ever so delicately explain to him that the comps I am providing are by no means the only ones he is to use but I tell the appraiser I am merely asking that he "consider" some of these. I use the www.zillow.com website to find my comps. If I have a 3/2, I only look at 3/2s. Don't try to compare a 3/1 to 2/1. That is not done unless there is nothing but 3/1s to compare to. In this market there are so many houses for sale there should be some exact matches in your areas. Also, try to compare Brick houses to Brick houses and Vinyl Siding to Vinyl Siding. Try to find houses as similar to yours as possible. Try to use comps from as close to your house as possible geographically. I try to stay within .5 mile and sales within 6 months. If I can find some houses on MLS for sale, I will include them too. Problem with MLS listing is that those are sale prices, not sold prices. We can ASK whatever we want for a house; the price it SELLS for is a much more important figure. For about $275, the appraiser will make the appraisal for "Marketing Purposes Only". This appraisal won't be good for a subsequent purchaser, but I do use this appraisal as a Markteting Tool. I show the prospective buyer the appraisal to justify the price of the house I am selling. Also, providing the buyers agent with a copy of the appraisal is a good idea. He or she can pass that on to the buyers appraiser and it might be used as a "guide" to make sure that the buyers appraisal is where we want it to be. I typically ask MORE for my houses than other houses in the neighborhood but my prices are supported by a recent appraisal by a licensed appraiser. The appraiser I recommend is John Jordan at The Appraisal Network. www.theappraisalnetwork.com.

Buy, Sell or Run Like Hell?

2008-02-15T16:04:00.000-08:00

The answer to this question depends on your entrance goal and exit strategy. I had a great chat with a fellow professional investor here in Memphis who is convinced that houses are not the lucrative market it once was. I agree that it is not what it once was. But the analogy that I like to use is this. The medical field is not what it used to be, right? Health insurance is squeezing doctors, more and more claims are denied by insurance. Health Insurance policys will now begin refusing to cover the cost of doctor negligence. This will certainly cause more doctors to leave the practice because those claims which were previously covered by the patients health insurance will now need to paid from the doctor's malpractice carrier exclusively. Does that mean that there will be fewer doctors and fewer medical procedures? Not at all. The industry will just have to be more careful and cost efficient resulting in a cost savings and fewer malpractice claims. By the same rationale, this downturn in the investing climate will mean that the weak investors will leave the market and giving a larger share to the true professionals. Every house on the market is a potential money maker. I was looking at certain listings that have been slashed in HALF IN 6 MONTHS. If these houses are even habitable, someone will live in them. If you could scoop up 10 houses for $15,000 each. Even if you had to spend $5000 to make them livable, then you would have $200,000 invested in 10 houses. I would expect the the payment on these properties to be around $1800 per month PITI. As people are forced out of ownership, they need rentals. You rent each house for $400 per month with a $400 deposit. $4000 per month income, $1800 per month expenses. That is what we need to look for. Find that house that in June of 2007 was listed for $60,000 now $30,000. Offer $15,000 and see what happens. It won't cost you a much to throw in that low bid. Let your tenants pay for these houses for you and you depreciate them gaining a tax advantage and building equity. Once rented you then offer a "portfolio" of 10 rented properties for $375,000 with tenants and leased to some other investor, realizing a $175,000 profit. I say buy, then sell, then run like hell.

Pre-Foreclosure Sales

2008-02-14T19:27:00.000-08:00

We all hear about the "pre-foreclosure" market, but what is it? Well, everyday across the United States, thousands of homeowners receive written notice from their mortgage company that a foreclosure action had started. In Tennessee, this can begin in as early as 61 days. Your state may be different. I won't go into the details about foreclosure in this post but will try to give you some good information about the period from notice to the home owner until date of sale. During this period, the borrower may be getting ready to leave, may be in denial, may have already vacated the premises, or else may be doing nothing at all. These notices of foreclosure are typically posted in a public record such as a local business newspaper each week or on their website. As a serious investor, there is nothing wrong with contacting these people offering your assistance. You may be able to work out an arrangement that will let the borrower avoid foreclosure (and the pressure and stress associated with it) while picking up a piece of property at a deep discount. You may have to deal with the lender or the lender's agent if you are going to do a "short-sale". When you are ready to step up to the table to present your offer, be prepared to deliver the cash quickly. My last flip was a pre-foreclosure short sale. I helped the home owner avoid having a foreclosure on her credit report, the bank accepted about $20,000 less than the existing first and second mortgage and I got a great house to renovate. I highly recommend the book THE PRE-FORECLOSURE PROPERTY INVESTORS KIT by Thomas J. Lucier available at www.amazon.com to learn more about this subject.

Example of house without curb appeal

2008-02-13T21:09:00.000-08:00

This house was built in the early 1960's. I am sure that when it was designed, its modern style was meant to stand the test of time. Unfortunately, it did not age well. Bought properly, this would make a great rental property. The concrete front yard is easily maintained and that is a plus. But the in-ground pool is a liability when it comes to rental property. Also, it lacks curb appeal. This house stands out in its neighborhood as being the "oddball". Even if you could update the facade, you would still be left with that unusual slanted roof that results in a slanted ceiling on in the den. The asking price was $62,000 which is not bad for a 3/2 in this area in average condition. Had it had a more traditional facade the asking price would be at least $10,000 more. If you entered the transaction with the intent to put a tenant in there, it would rent for $675 or maybe a little more because of the pool. My recommendation would be to fill in the pool. But lets pretend it did not have the pool. Buying the house for $50,000 with 10% down would result in a note of about $450 per month PITI. You would profit about $225 per month. The interior of this house was not bad and the location was pretty good. I just don't buy ugly houses.

Curb Appeal attracts buyers

2008-02-13T20:52:00.000-08:00

Have you noticed how some houses are cute even though they are not expensive. Here are a few houses that have great curb appeal. You will notice that they are traditional, simple, cute, square with pleasing angles. The landscaping is done tastefully and there are no obtrusive elements to distract a buyer. When shopping, pay close attention to the curb appeal. It is not as important to for rental property, but when it comes time to sell, it will be a factor. I would much rather take a house with curb appeal and a distressed interior than an ugly house needing no work. We can always change interior colors, hang doors and redo the kitchen and bathrooms. It is difficult to make an unattractive house exterior pretty without major modifications.

Amber Onyx straight from the mine

2008-02-13T20:46:00.000-08:00

This piece of amber onyx was cut from the mine in Utah recently. If you want, you can even go to the mine and choose what piece you want for your house. Notice how the sunlight shines through it. Be sure to think how this unusual material could really make your house stand out from the crowd. The cost is similar to granite. I have seen this used where a window would go to filter light into a bathroom. Small shelves can be made with a light underneath in an art niche.

Amber Onyx

2008-02-13T20:40:00.001-08:00

And now for something completely different. If you want your house to really stand out from the crowd, contact me about using some Amber Onyx. This exotic material takes about 7 million years to make and is ready now in slabs for use as a countertop, shelf, tub surround wall or sculpture. It is used like granite, but is translucent. With simple rope lighting diffused by a thin sheet of plexiglass, the amber onyx glows an eerie glow unlike any other material. I personally have a small sculpture that I have lit in my office. I have seen boulders used as driveway markers lit from the inside with bulbs. Check out the website http://www.amberonyx.com/ for more information. But contact me if you want to get some.

Memphis Investors Group

2008-02-13T11:53:00.000-08:00

The Memphis Investors Group is having its next monthly meeting on Thursday, February 14 at the Germantown Center, Great hall located at 1801 Exeter, Germantown, TN 38138. This is a great group be involved with. The discussion forums begin at 6:00 P.M. These are free for first time visitors and each meeting after that is $20 for non-members. They meet each month on the second Thursday of the month. You will be surrounded by other like-minded investors who have property to sell and want to buy. Details are on their website at www.memphisinvestorsgroup.com or you can call them at 901-414-2729.

Still a Good Market for Real Estate

2008-02-13T07:41:00.000-08:00

I just missed making an offer on this 1200 sq. ft. traditional house located in a working middle class area of Memphis called Berclair. This area is full of hard working people with a mix of owners and renters. This neighborhood has been a solid income producing neighborhood for many years and has held its value well. This house has CHA, 3 bedrooms, 1 and half bath, concrete driveway and a porch off the side. The large backyard is great for kids and dogs. Location on a cove is also a plus. The seller states that the interior was recently painted and it has new carpet. The asking price was $75,000 and it has a contract on it after only 33 days on the market. This would be a great little rental property. I would expect it to produce about $200/month income in this market. It is possible that it may even produce more. If the buyer got the house for $65,000 which is not unreasonable, the note would be about $575 PITI and a fair rent would be $775/ month. This is still a great market to find deals. You just have to be quick to find them.

Simple floor fixes

2008-02-12T17:19:00.000-08:00

There was a laundry area in an upstairs nook that had badly stained linoleum where a washer/dryer had once been. This upstairs was converted attic space and I have no idea why or how someone would put a laundry area here. But they did, and so I needed to make it an asset rather than an eyesore. I went to Home Depot (no they don't pay me to write that). I purchased the plastic fake wood strips called laminate. They can be cut with sharp scissors or a razor. I used sharp scissors. The planks lock into each other for ease of installation. Some planks like mine had a built in moisture barrier. Otherwise you will need to buy some plastic sheeting or thin foam floor underlay material. For the houses I do, my goal is cheap and easy. I bought the ones that did not need any barrier. This picture shows my work in progress. Notice the water drain in towards the wall and the dryer vent that vents OUTSIDE the house. I eventually replaced the old carpet with some Lowe's Burber carpet.

Making walls pretty is easy and cheap

2008-02-12T12:13:00.000-08:00

The walls in the house are an inexpensive fix but can be costly and time-consuming if not done propery. Usually each room has four walls. No one notices if the walls are in good shape, but if they are not in good condition, they can really diminish the value of the house. I bought a house recently with over 600 holes in the walls. Mostly they were nail holes but there were about 100 plastic anchors sticking out also. I pulled each anchor out with needlenose pliers leaving a hole about the size of a pea. I took a five gallon bucket of and a putty knife and went to town. Where there were water stains, I first sprayed with aerosol Kilz. Let it dry and sprayed again. On the small holes, I layed down a layer of joint compound and smoothed it out. Actually, it is one motioin laying the compound and smoothing it out. If done properly, you don't really even need to sand later. On those places where the compound is not smooth, come back about one day later and sand with a grit of 150 or higher. If the hole is still visible, repeat this process. Be sure to remove all nails, anchors, and patch all holes. I will cover larger holes in the future.

What have you done on your houses?

2008-02-11T15:16:00.000-08:00

To all my loyal blog readers. Please be sure to send me your comments about what I have written. If you have any stories or ideas let me know. I welcome your remodeling suggestions and am interested in knowing what has worked and not worked for you. I would be glad to post pictures of houses you have done or even have for sale. The important thing is for us to share ideas with each other as we all profit from this buyers market.

Triple your money in Kitchens and Baths Part 2

2008-02-11T15:01:00.000-08:00

Naturally, where else is your money well spent when remodeling a house? Bathrooms. Although not a popular place for socializing, we spend a great deal of time there. I usually try to purchase houses with 2 or more bathrooms. Often times remodeling the master or main bath is quite simple because the areas are small. Tiles can be purchased oftem times for less than $1 each and suble trim can be added inexpensively. You can use the same tiles for walls and floors but I recommend a darker color for floors than the walls. Earth tones are also recommended. In this bathroom, I spent about $1000 on materials including a new tub, sink, toilet, tiles, grout, fixtures, light and another $1000 on labor for installation and plumbing. I also painted the walls and trim, replaced the door and hinges and updated the outlets to Ground Fault Outlets for safety.

Triple your money in Kitchens and Baths Part 1

2008-02-10T13:51:00.000-08:00

When it comes to increasing the value of your house, nothing beats sprucing up the Kitchen and Bathrooms. People spend a good deal of time in their kitchens. A kitchen will sell a house if done properly. The last house I bought had cabinets from K-Mart and were the snap together type made of white particle board. There was no trim on them either. They looked like they belonged in a garage. The floor was linoleum and had plenty of waterstains and the subfloor was visible where the plastic had torn. I was very happy to see the kitchen in this state. What I saw was OPPURTUNITY. The decision to gut the kitchen from floor to ceiling and then some was easy. I spent just under $2500 on the materials and another $1000 in labor (if you include my labor calculated at $20/hr.) I had an assistant who I pay $15/hr. We also added some duct work from the kitchen to an addition that was technically not required but added 400 Sq. Ft. of heated/cooled area. Here is the final product. I increased the value of the house 31% (based on the eventual sale price) spending about 33% of my budget $10,000 budget in the kitchen. That is a 3:1 ROI.

Making Money in a Buyers Market

2008-02-10T11:20:00.000-08:00

I am sure you have all be told this, but I think it bears repeating. You don't make money on housing investments when you sell the house, you make your money when you purchase the house. What does that mean? It means that it does not matter at what price you sell the house, your profit is realized based on your purchase price. I know before I make an offer, what the house might sell for within about 5% up or or down. For example. I would know that the average price per sq. ft. in a given area is $100. I know that based on the quality of the work I have done in the past, I can always meet or beat "average" condition. Sure, the economy may be weak and it may take longer to sell the house, but I know that I will get somewhere between $95-$105 at some point. I know that I need to purchase for 60%-70% of sale price or less. What does that mean? I know I cannot pay retail and sell retail. I must buy wholesale and sell retail. A good rule of thumb is that if you can make $10,000 on a house in 6 months, your have done well. The important thing is to not take longer than 6 months.

Ranch Houses Sell Well

2008-02-10T10:21:00.000-08:00

You will find an abundance of Ranch style houses built between 1945 and 1970. This simple design appeals to many people because of its conservative nature and cookie-cutter design. Usually these houses appear in neighborhoods with other Ranch houses and so they all just fit in. I think it is safe to say that no one really finds this style glamorous, ostentageous or trendy. It is precisely these attributes that make them always in demand. Ranch stle houses are simple designs with common traits that make them easily recognized. Usually wide facades that face the street and roofs that are not steeply raked are some of the more common characteristics. What can really set these houses apart is some simple landscaping to draw the attention away from the plain design and focus more on the landscape. Here is a house I bought and did well with. I knew before buying it that I would sell it to a single professional or a young couple with a single child. This 3 bedroom 1.5 bath 1250 sq. foot went to a husband and wife with a 3 year old son. This is the house that had the floors refinished. It was only listed for 45 days.

Floors After Refinishing

2008-02-09T08:03:00.000-08:00

I found a great guy to refinish my floors locally for less than $2.00 per sq. ft. His name is Brian Deas here in Memphis. He said he would have the job done in 4 days and he did. He worked by himself for 4 days and the floors...well speak for themselves. When the agent showed the house to the buyer, the woman loved the kitchen and bathrooms, the husband was impressed by the floors. Brian put on several coats of Polyurathane to seal them and recommends that they be coated again in about 5 years to maintain their luster. He also filled in the gaps around the edges and replaced a few small pieces in the laundry area. I chose to not put down the quarterround because that would have added about $500 to the cost that I did not feel I would get back out when I sold the house. Contact me if you want Brians phone number.

Money Under Your Feet

2008-02-09T07:35:00.001-08:00

When I purchase a house, I am careful to pay close attention to the condition of the floors. Although not as important as a remodeled bathroom and kitchen, floors can make or break the sale of a house. The last house I remodeled had 650 sq. ft of hardwood floors in the 3 bedrooms, hallway, closets, laundry room and combined living/dining room. Their condition was pretty bad in some places, like where beds had been dragged and high traffic areas. But they looked decent along many areas like the living/dining area and the closets. The laundry room had water damage and there was wood missing. Also, there was a narrow gap between the wall and the floor where quarter round had been removed. As you can see, this bedroom had deep scratches in the wood, there was no polish or poly coat. The wood was straight and not warped, and did not require any wood replacement. When I saw these floors, I thought to myself...these floors will be beautiful.

My First Blog

2008-02-06T21:14:00.000-08:00

Your House Auctions welcomes you to our new site. We will periodically post content about houses we are buying, remodeling and selling along with some how to tips. Let me begin by telling you how I got started in real estate investing. I lost my job and needed something that I could do that would make money, was fun and recession proof. I knew I did not want to work for someone else but wanted to control all aspects of my business. So I bought my first investment house in September of 2006. I picked the Sherwood Forest neighborhood near the University of Memphis thinking that it would be a good choice because of its proximity to Park and Getwell. The neighborhood was established and has long been a desirable one for first time buyers of all racial and ethnic backgrounds. I knew I wanted to buy for about $60,000 and sell for around $85,000 with a holding cost of $3000 and rehab cost of no more than $10,000. I knew I wanted to try to keep the rehab at a minimum but wanted the house to also have the "WOW" factor. I planned on what I would call minor cosmetic work such as painting the inside and outside, putting down carpet, plus remodeling the kitchen and bathroom. I knew to look only for a 3 bedroom with 2 full baths so that when it came time to sell my house would have an advantage over the 2/1 and 3/1 competition. I bought the house for $60,000 and the seller paid about $3000 of my closing costs plus gave me $1000 for carpets after the closing. I ended up spending $5000 on the holding costs due to some problems in painting the outside in cold weather. $10,000 on the rehab plus another $2000 on appraisals, utilities, insurance and other little things. The buyer had no agent so that helped me. In the end, the profit on paper was around $9500. Not too bad for my first try.