Well, you’d be wrong. :)
Ever since we first laid eyes on our current flip, we’ve still been searching for our next project – our dream is to have a new flip “waiting in the wings” while a completed flip is on the market. That way we can spring right into action with renovations as soon as our cash is freed up from the sale of the finished flip. Sounds great, right?
Well, the past few months have been filled with failed attempts to buy the next flip. But we’ve been trying hard, I promise!
First, we put in a full-price, cash offer on a great house on a little neighborhood lake the first day it came on the market – well, it got 5 other offers that first day and sold for 13% over the asking price. Wop wop. It’s in a really coveted location so it’s going to be worth a pretty penny once it’s all redone – although it was bought by someone that intends to live there, so who knows when it will hit the market again?
( All of these funky looking photos in this post are of the actual houses – but since we don’t own them I figured it might be nice to protect their identity. )
Next, we hopped in the car the very second we saw a great potential flip come on the market in a funky little neighborhood near White Rock Lake – we were there minutes after the listing agent put the lockbox on the door and were the first people to see it. The house was on a great lot and needed lots of work – it looked like a really fun project, and would have been a new neighborhood for us.
We thought about it overnight and put in an offer the next morning – and we were too late. The home had already gone under contract to a guy that hadn’t even seen the house! Sigh.
Then we put in an offer on a foreclosure that happened to be right down the street from us – it’s unusual for our neighborhood to have foreclosures, but the homeowners had apparently gotten under water with a home equity loan. We originally put in an offer late last year when the house was just a short sale as opposed to a foreclosure (and that offer obviously didn’t work out) so we were hopeful that the bank would be anxious to get rid of the property now that it had been foreclosed.
For the first 15 days the house was on the market only “end users” were allowed to put in offers – those are people that would actually live in the home and use it as their homestead. On the 16th day, investors could finally submit offers if the home hadn’t already sold. Jason was in contact with the asset manager at the bank and had our offer on file well before the 16th day so that it could automatically go into the system on Day 16. We got a call during our big road trip from the asset manager, asking if our offer was our “best and final” since the property had received multiple offers from investors. We upped our offer by $10k and crossed our fingers – and then we got a call the next week that the house went to a higher offer, but that we could still be considered a backup offer in case the current contract fell through. I was kind of sad about this one! Although maybe it was a blessing in disguise since the house has a pool and I was dreading dealing with another pool after tackling a crazy pool remodel with our first flip.
Bottom line? We keep finding great flips and lose them the first day to other investors that either act a little quicker or throw a little more money in the pot. So I guess that means we’re slow and stingy? :)
But it’s not all doom and gloom. Last Monday, we signed the contract for our next flip!! And I am beyond excited about this one.
We haven’t had it inspected yet so there might be hidden flaws, but so far it looks like it’s in great condition and possibly just needs a new roof and air conditioning system (not huge in the grand scheme of other issues we’ve dealt with) in addition to all the cosmetic changes we want to make. There are already new windows, plantation shutters, almost 2,600 square feet, 4 bedrooms, 2.5 baths, and a great backyard. And this might be the first time we don’t have to plant grass!! For some reason, that makes me very happy. We need to make some serious changes to the jack ‘n jill bath so that it can serve the 4th bedroom (which doesn’t have access to a bathroom now so it’s really just an office) and that will be fun to figure out. There’s also a 1/2 bath that can only be accessed from the laundry room, so we’ll have to fix that as well. Every flip needs a few challenges, right? :)
We will be closing May 31st at the very latest, but likely sooner. It will be nice to have ample time to really plan out our changes, get our permits in order, etc., rather than feeling rushed with a really quick turnaround from contract to closing like we usually have. Let the fun begin!!