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   <title>Flip Bay Area Houses</title>
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   <id>tag:www.flipbayareahouses.com,2007://1</id>
   <updated>2007-08-21T05:14:40Z</updated>
   
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<entry>
   <title>&quot;FLIP&quot; Q &amp; A - Answers to Your Email Questions </title>
   <link rel="alternate" type="text/html" href="http://www.flipbayareahouses.com/archives/napa/insider_news.html" />
   <id>tag:www.flipbayareahouses.com,2007://1.5</id>
   
   <published>2007-08-20T22:15:05Z</published>
   <updated>2007-08-21T05:14:40Z</updated>
   
   <summary>Beth, Fairfield wrote...Ash project is taking longer than I thought &quot;flip&quot; projects should normally take to complete. I saw a &quot;flip&quot; TV program wherein the investor had many projects going at once, he was making LOTS of money, will you?...</summary>
   <author>
      <name></name>
      
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         <category term="Napa" scheme="http://www.sixapart.com/ns/types#category" />
   
   
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      Beth, Fairfield wrote...Ash project is taking longer than I thought &quot;flip&quot; projects should normally take to complete. I saw a &quot;flip&quot; TV program wherein the investor had many projects going at once, he was making LOTS of money, will you?


      Great question, and the answer is &quot;yes&quot;. Many of the programs on television depict a higher volume of projects than what I represent on the web site. I have a profit goal that I am targeting, but I also have serious time constraints that keep my project goals in check(ie. family). If I go faster and larger in scope, I will need to carry a larger overhead and I would have larger monthly holding costs. Additionally, at the time I purchased the Ash property, there were no better projects in the local market that I felt were worth pursuing.

I watched a program wherein the investor had close to $10,000,000 in project inventory that he was preparing and offering for sale. Great for them, and I wish them the best, but I don&apos;t need to add that much more stress to my life. I already have twins.  Remember that leverage(using loaned funds to purchase property) is a key ingredient to succeeding financially, but you need to service those loans during the projects rebuild phase, and $8,000,000 worth of loans creates a huge monthly holding cost. Thanks for the question. 
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</entry>
<entry>
   <title>Investor Roundtable Series 2007</title>
   <link rel="alternate" type="text/html" href="http://www.flipbayareahouses.com/archives/info/investor_roundtable_series_200.html" />
   <id>tag:www.flipbayareahouses.com,2007://1.12</id>
   
   <published>2007-07-30T23:35:10Z</published>
   <updated>2007-07-31T00:27:43Z</updated>
   
   <summary> The Investor Roundtable Series is a monthly forum where real estate investors meet to share ideas and gain in-depth understanding of how to succeed as a real estate investor. Meetings are held the third Thursday of the month from...</summary>
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      <name></name>
      
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      <![CDATA[<img alt="small%20truck%20flip.JPG" src="http://www.flipbayareahouses.com/small%20truck%20flip.JPG" width="170" height="120" />

The Investor Roundtable Series is a monthly forum where real estate investors meet to share ideas and gain in-depth understanding of how to succeed as a real estate investor. Meetings are held the third Thursday of the month from 7pm - 8pm, and usually feature a guest lecturer. The lecture series is currently on hiatus but will begin again in September, 2007]]>
      These guest lectures are professionals of varying backgrounds whose primary purpose is assist in making real estate investing easier and more profitable for investors. In the past we have featured accountants, exchange facilitators, lenders, general contractors and various real estate investors that have shared with the group their exceptional experience and insight, thus helping all who have attended become better versed in the finer points of successful investing. Admission is free, but reservations are required, so please call or email me to ensure your attendance. 
Tim O&apos;Dea
(707) 258-5236
todea@cbnapavalley.com
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<entry>
   <title>Activities Log - Ash Street</title>
   <link rel="alternate" type="text/html" href="http://www.flipbayareahouses.com/archives/daily_activities_log/activities_log_ash_street.html" />
   <id>tag:www.flipbayareahouses.com,2007://1.11</id>
   
   <published>2007-04-26T20:58:42Z</published>
   <updated>2007-08-15T01:55:51Z</updated>
   
   <summary>August 15, 2007 - The house was lowered onto the new foundation yesterday, and it looks great. The repair to the framing began this morning, and I expect to have it ready for final by the end of the week....</summary>
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      <![CDATA[<u><em><strong>August 15, 2007 </strong></em></u>- The house was lowered onto the new foundation yesterday, and it looks great. The repair to the framing began this morning, and I expect to have it ready for final by the end of the week.  My next step will be to improve the front and rear porch areas, and remove the remaining rotted areas of the framing. Now with the structure on a solid foundation, we'll start to see improvements occurring at a much faster rate.

<img alt="P1010003.JPG" src="http://www.flipbayareahouses.com/P1010003.JPG" width="275" height="205" />   <img alt="P1010006.JPG" src="http://www.flipbayareahouses.com/P1010006.JPG" width="275" height="205" />


<u><em><strong>July 31, 2007 </strong></em></u>- I have developed the final punch list and we're geared up to lower the home Monday of next week(knock on wood).  At this stage our biggest concern is that we install enough shear support so that the new framing won't twist and move once the weight of the home is lowered onto it. Additionally, when the home is being lowered some of the new framing will need to be cut to allow the house movers to removed their rigging and girders. We'll have everything ready for final inspection by Wednesday(again...knock on wood). OH YEAH... and keep your job site clean and be a good neighbor. Look out for their interests, and they'll hopefully look after yours. Remember, a happy neighborhood is a desirable neighborhood, and desirable equates to greater value down the road. Oh, that's my dog.

<img alt="framing.JPG" src="http://www.flipbayareahouses.com/framing.JPG" width="198" height="148" /> <img alt="overbuild.JPG" src="http://www.flipbayareahouses.com/overbuild.JPG" width="198" height="200" /> <img alt="keepitclean2.JPG" src="http://www.flipbayareahouses.com/keepitclean2.JPG" width="198" height="200" /> <img alt="dog.jpg" src="http://www.flipbayareahouses.com/dog.jpg" width="80" height="110" />

<u><em><strong>July 30, 2007 </strong></em></u>- I have new found enthusiasm for getting this home on its new foundation, and we'll be lowering the home next week.  There are several small things that need to be addressed prior to lowering the home, but these issues were expected. When buying a home of this age, you must expect that some maintenance and updating has occurred to the structure, that it was done while intoxicated or by a person of questionable mental capacity. In the case of this property, some updating and maintenance has been performed, but still there are wood rot issues that need to be addressed. Some of these repairs I will perform prior to the lowering of the home, and some will wait until afterwards.

<img alt="rot%20damage%202.JPG" src="http://www.flipbayareahouses.com/rot%20damage%202.JPG" width="198" height="140" /> <img alt="rot%20damage.JPG" src="http://www.flipbayareahouses.com/rot%20damage.JPG" width="198" height="140" /> <img alt="plumbing.JPG" src="http://www.flipbayareahouses.com/plumbing.JPG" width="198" height="140" /> 

The front and rear porches need a thorough once over, but this will be better performed once the home is on the new foundation.  Address any wood rot or pest damage now, otherwise you'll be paying for it later(probably when the house is in escrow in the form of closing cost credits).

<u><em><strong>July 30, 2007 </strong></em></u>-We are just about ready to lower the house onto the new foundation, and according to a piece of paper I received this morning, we need to hurry up. The inspector from the city came out to visit the end of last week, he's given me his expectations for finishing the underfloor framing, and we should have touch down next week. 
When undertaking a project of this magnitude you need to treat everything with a certain sense of urgency. A couple of times over the past sixty days I have had carpenters NOT show up for scheduled work, and I had not secured back up people in the event that the scheduled workers might "flake". Consequently, I am in a position now where my schedule has been altered to the tune of at least $750(see attached picture). You need to be diligent, and you need to take responsibility for ALL unforeseeable issues because there are NO UNFORSEEABLE issues.(see Bible under Noah's Ark)

<a href="http://www.flipbayareahouses.com/Joybill.html" onclick="window.open('http://www.flipbayareahouses.com/Joybill.html','popup','width=510,height=651,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/Joybill-thumb.jpg" width="255" height="325" alt="" /></a>

<u><em><strong>July 27, 2007 </strong></em></u>- OOPS! I had a little difficulty with the web site over the past few weeks, but the minor problems of this new site have been fixed and we're back to full speed ahead. Sorry for the inconvenience. 

<u><em><strong>June 22, 2007 </strong></em></u>- Last night's turn out for the Investor Roundtable was terrific, and some questions regarding the project's level of detail and difficulty were addressed.  Whenever purchasing a real estate investment project never "bite off more than you can chew".  The Ash Street project is a fairly difficult project, but of a difficulty level that I have tackled before. You should only take on a project that you feel you could complete within your timeframe, experience level and budget constraints.

<u><em><strong>June 21, 2007 </strong></em></u>- I have invited members of my Investor Roundtable Series to tour the property tonight.  Tonight we'll review the project's budget and timeline to date, discuss project challenges and hurdles that have been overcome so far.  I have found that a picture may be worth a thousand words, but an on site visit is worth a million.  If you are interested in becoming part of my Investor Roundtable Series just send me an email today.

<a href="http://www.flipbayareahouses.com/ashsheer2.html" onclick="window.open('http://www.flipbayareahouses.com/ashsheer2.html','popup','width=1024,height=768,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ashsheer2-thumb.JPG" width="270" height="200" alt="" /></a>  <a href="http://www.flipbayareahouses.com/ashsheer3.html" onclick="window.open'http://www.flipbayareahouses.com/ashsheer3.html','popup','width=1024,height=768,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ashsheer3-thumb.JPG" width="270" height="200" alt="" /></a>

<u><em><strong>June 18, 2007</strong></em></u> - Still working on finishing up the underfloor framing.  Sheer support for the cripple walls are provided by 1/2" plywood that is nailed every 6" around the perimeter of the panel and every 12" to each stud within the panel.  Requirements vary, so please contact the applicable city or county building departments for specific details.  The sheer panels provide strength, added safety and stability to the structure and are usually a necessary part of many construction projects.

<a href="http://www.flipbayareahouses.com/ashsheer1.html" onclick="window.open('http://www.flipbayareahouses.com/ashsheer1.html','popup','width=1024,height=768,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ashsheer1-thumb.JPG" width="270" height="200" alt="" /></a>  <a href="http://www.flipbayareahouses.com/ashsheer.html" onclick="window.open'http://www.flipbayareahouses.com/ashsheer.html','popup','width=1024,height=768,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ashsheer-thumb.JPG" width="270" height="200" alt="" /></a>

<u><em><strong>June 13, 2007</strong></em></u> - Hired local contractor to assist me in building the required cripple walls.  We progressed pretty far in one day, and we uncovered several challenges.  I have called the house mover to address issues with the cripple walls, shear panels and the metal support beams that the raised house is currently resting upon. It appears that much of the new framing that was just placed will have to be destroyed to lower the house onto thenew foundation.  ALWAYS be patient and flexible, otherwise you'll go nuts...trust me.

<u><em><strong>June 6, 2007</strong></em></u> - Have placed all of the mudsill(pressure treated wood planking that must be installed between the concrete and fir framing) per code, now it is time to calculate how much lumber I will need to complete the underfloor construction for this project.  I have decided that I will need to build cripple walls to attain the required crawl space underneath the house.  Cripple wall requirements can be obtained at local city and county building departments. 

<u><em><strong>May 28, 2007</strong></em></u> -  The concrete foundation has been poured and the forms dismantled. Next step is to place the mud sill and place cripple walls. The cripple walls in this case are a lesser expensive alternative to concrete since my objective is to retain the original elevation height of the structure.  You'll want to review this information with your contractor and city/county building department prior to deciding on what options are best for your project. At this point in the project I remain on budget and I am VERY happy about this fact.

With any project wherein the property is as old as this one, the initial "clean up" budget should be set relative to the property's age.  There is so much stuff in a home of this age that needs to be attended to, and this costs money in debris disposal and labor.  On this project I called <b><i>Lupe's Dump Hauling</i></b> in Napa, <b><i>(707) 738-3547</i></b>, to assist with the removal of debris uncovered from throughout the property's interior and exterior. Lupe and his crew did a great job.

<a href="http://www.flipbayareahouses.com/ash53107.jpg"><img alt="ash53107.jpg" src="http://www.flipbayareahouses.com/ash53107-thumb.jpg" width="270" height="200" /></a> <a href="http://www.flipbayareahouses.com/ash53107a.jpg"><img alt="ash53107a.jpg" src="http://www.flipbayareahouses.com/ash53107a-thumb.jpg" width="270" height="200" /></a>


<u><em><strong>May 10, 2007</strong></em></u> - I got lucky today in that upon further investigating of the flooring I have found several key areas where the original wood flooring is in exceptional condition.  This will allow more of the home's original character to be exhibited, add more beauty and warmth, and save money on costly replacement wood flooring. Cool. 

<a href="http://www.flipbayareahouses.com/ash%20005aa.html" onclick="window.open('http://www.flipbayareahouses.com/ash%20005aa.html','popup','width=553,height=612,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ash%20005aa-thumb.jpg" width="300" height="355" alt="" /></a> 

<u><em><strong>May 9, 2007</strong></em></u> - The foundation is under-way, FINALLY. We're working to get the footings dug, the forms in place and pour concrete as soon as possible.  Since the house is in the air, now is the perfect time to inspect everything under the house. Some of the plumbing looks suspect, there are all sorts of abandoned building materials to be cleared out, and all of these chores are made easier by the fact that I can almost walk upright under the house.  Also, when buying an older home such as this, be aware that a lot of "living" has occurred within these walls, and by more than just the human inhabitants.  I have uncovered several rodent nests through out the crawl space, and now is the perfect time to clean out these areas and seal them to future "tenants".

<a href="http://www.flipbayareahouses.com/ash%20006aa.html" onclick="window.open('http://www.flipbayareahouses.com/ash%20006aa.html','popup','width=553,height=415,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ash%20006aa-thumb.jpg" width="275" height="220" alt="" /></a>      <a href="http://www.flipbayareahouses.com/ash%20007pp.html" onclick="window.open('http://www.flipbayareahouses.com/ash%20007pp.html','popup','width=553,height=415,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ash%20007pp-thumb.jpg" width="275" height="220" alt="" /></a>


<u><em><strong>April 26, 2007</strong></em></u> - Well, this is unusual. Phil of <b><i>Phil Joy House Movers</i></b> told me yesterday that I could expect to have the house lifted and set by midweek next week. He also said that he may be able to get to it before the end of this week. No promises, but it might be possible. Well his guy showed up this afternoon, Thursday, and the project of lifting the house is underway.  Thanks Phil!

<img alt="RE1010002.JPG" src="http://www.flipbayareahouses.com/RE1010002.JPG" width="275" height="187" />  <img alt="RE1010005.JPG" src="http://www.flipbayareahouses.com/RE1010005.JPG" width="275" height="187" />

<u><em><strong>April 25, 2007</strong></em></u> - Followed up on a friend's recommendation and visited a cabinet warehouse in Oakland.  I expected good prices, but what I obtained is phenominal.  This particular warehouse is consolidating locations and liquidating inventory.  I was able to purchase my new kitchen cabinets, and a new vanity for the bathroom for MUCH less than what I have budgeted. By being open minded and flexible you'll be able to take advantage of these types of opportunities when they become available. These cabinets are good quality, constructed well, and have the "period specific" appearance that this project requires.

<img alt="ash%20003.jpg" src="http://www.flipbayareahouses.com/ash%20003.jpg" width="550" height="367" />

<strong><em><u>April 24, 2007</u></em></strong> - FINALLY, I have signed a contract and the home will be lifted soon, and the foundation work can commence. The cost of the lift is $1,500 more than I have budgeted, but the plan is to lift the home higher off the ground and this should make the construction of the foundation quicker and easier. We'll see.
 
<u><em><strong>April 13, 2007</strong></em></u> - Today I started the process of investigating the condition of the structure and began removing unnecessary and unwanted materials from the house.  Since this house was built in 1900, the structural framing of the property is significantly different than that of homes built to today's standards.  There is a TON of wood in this structure. It is important to understand that what was acceptable building practice years ago may not be acceptable or desirable today.  Always refer to the local building department or a licensed contractor for advice prior to implementing any structure changes to your building.

<img alt="P1010300.JPG" src="http://www.flipbayareahouses.com/P1010300.JPG" width="550" height="367" />


<u><em><strong>March 23, 2007</strong></em></u> - Concrete contractor got back with me regardng the price of the foundation replacement. Price was more than double initial estimate, but have been in contact with another contractor, and his plan will work within budget.  With concrete prices markedly higher than in past years, and with the contractor wages increasing in the bay area, it's important to shop around. ]]>
      
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<entry>
   <title>Summer, 2007 -- 1229 Ash Street, Napa</title>
   <link rel="alternate" type="text/html" href="http://www.flipbayareahouses.com/archives/projects/ash_street_napa.html" />
   <id>tag:www.flipbayareahouses.com,2007://1.3</id>
   
   <published>2007-03-12T23:43:42Z</published>
   <updated>2007-08-01T04:03:43Z</updated>
   
   <summary>This is our newest flip project home. Located in old town Napa, this two bedroom home is close to downtown, and has great potential. Want to learn more about this project and keep apprised of the progress? Check out our...</summary>
   <author>
      <name></name>
      
   </author>
         <category term="Napa" scheme="http://www.sixapart.com/ns/types#category" />
         <category term="Projects" scheme="http://www.sixapart.com/ns/types#category" />
   
   
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      <![CDATA[This is our newest flip project home.  Located in old town Napa, this two bedroom home is close to downtown, and has great potential.  Want to learn more about this project and keep apprised of the progress?  Check out our progress daily by clicking our <a href="http://flipbayareahouses.com/archives/daily_activities_log/activities_log_ash_street.html">daily activities log.</a>

<img alt="ash%20030.jpg" src="http://www.flipbayareahouses.com/images/ash%20030.jpg" width="548" height="411" />

This is an old home, circa 1900, and construction standards have changed substantially since this home was originally constructed. For a "house junkie" like myself, this project is an awesome journey back in time.   

]]>
      <![CDATA[<table class="three" width=100%><tr><td class="three<a href="http://www.flipbayareahouses.com/foundation%20-%20Ash%200015.html" onclick="window.open('http://www.flipbayareahouses.com/foundation%20-%20Ash%200015.html','popup','width=768,height=576,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/foundation%20-%20Ash%20001-thumb.jpg" width="250" height="116" alt="" />   </a></a></td><td class="three<a href="http://www.flipbayareahouses.com/ash%20024.html" onclick="window.open('http://www.flipbayareahouses.com/ash%20024.html','popup','width=576,height=768,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ash%20024-thumb.jpg" width="100" height="116" alt="" /></a>
</td><td class="three<a href="http://www.flipbayareahouses.com/ash%20004.html" onclick="window.open('http://www.flipbayareahouses.com/ash%20004.html','popup','width=768,height=576,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/ash%20004-thumb.jpg" width="250" height="116" alt="" /></a>
</td></tr><tr><td class="three">  <a href="http://www.flipbayareahouses.com/ash%20foundation%20plan.pdf">Foundation Improvements Plan</a>   </td>   <td class="three<a href="http://www.flipbayareahouses.com/Ash%20Kitchen.pdf">New Kitchen Plan</a>   </td>   <td class="three"><a href="http://www.flipbayareahouses.com/Budget_SPREADSHEET%20-%20Ash.pdf">Keep on Budget (Our Plan)</a></td></tr></table>

]]>
   </content>
</entry>
<entry>
   <title>157 Dillon Drive</title>
   <link rel="alternate" type="text/html" href="http://www.flipbayareahouses.com/archives/bay_area/157_dillon_drive.html" />
   <id>tag:www.flipbayareahouses.com,2007://1.6</id>
   
   <published>2007-02-03T22:18:16Z</published>
   <updated>2007-02-03T22:28:00Z</updated>
   
   <summary>This four bedroom, two bath, single level home is located in northwest Vallejo. The price range for this home, in this neighborhood at the time of purchase was $380,000-$450,000. I purchased this home &quot;AS IS&quot; for $370,000, and sold it...</summary>
   <author>
      <name></name>
      
   </author>
         <category term="Bay_Area" scheme="http://www.sixapart.com/ns/types#category" />
   
   
   <content type="html" xml:lang="en" xml:base="http://www.flipbayareahouses.com/">
      <![CDATA[This four bedroom, two bath, single level home is located in northwest Vallejo. The price range for this home, in this neighborhood at the time of purchase was $380,000-$450,000. I purchased this home "AS IS" for $370,000, and sold it in four months for $430,000.

<img alt="Dillon%20Front.jpg" src="http://www.flipbayareahouses.com/images/Dillon%20Front.jpg" width="550" height="367" />
]]>
      <![CDATA[<strong><u>PROPERTY BREAKDOWN</u></strong>
The property had been needing attention for some time, and the previous owner was unable to keep up. At time of purchase the property required a new roof, roof sheathing and rafter repairs, replacement of the master bathroom's shower surround, dry rot repair in the family room wall and floor, replacement of the family room slider and a lot of clean up. Inside and out.

<table class="three" width=100%><tr><td class="three"><a href="http://www.flipbayareahouses.com/images/01.html" onclick="window.open('http://www.flipbayareahouses.com/images/01.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/images/01-thumb.jpg" width="175" height="116" alt="" /></a>
</a></td><td class="three"><a href="http://www.flipbayareahouses.com/images/02.html" onclick="window.open('http://www.flipbayareahouses.com/images/02.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/images/02-thumb.jpg" width="175" height="116" alt="" /></a>
</td><td class="three"><a href="http://www.flipbayareahouses.com/images/03.html" onclick="window.open('http://www.flipbayareahouses.com/images/03.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/images/03-thumb.jpg" width="175" height="116" alt="" /></a></td></tr><tr><td class="three"><a href="http://www.flipbayareahouses.com/images/01.html" onclick="window.open('http://www.flipbayareahouses.com/images/01.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false">Demo of Sink</a></td><td class="three"><a href="http://www.flipbayareahouses.com/images/02.html" onclick="window.open('http://www.flipbayareahouses.com/images/02.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false">Kitchen After Sink Removal</a></td><td class="three"><a href="http://www.flipbayareahouses.com/images/03.html" onclick="window.open('http://www.flipbayareahouses.com/images/03.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false">Counter Top Demo </a></td></tr></table>

Kitchen Demolition -- The kitchen had considerable damage to the cabinet doors and counter tops.  It was calculated that the cost of replacement cabinets would be justified since the damaged counter tops already required replacement.

<table class="three" width=100%><tr><td class="three"><a href="http://www.flipbayareahouses.com/images/Ripon4_11.html" onclick="window.open('http://www.flipbayareahouses.com/images/Ripon4_11.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/images/Ripon4_1-thumb.JPG" width="175" height="116" alt="" /></a></td><td class="three"><a href="http://www.flipbayareahouses.com/images/Ripon5_1.html" onclick="window.open('http://www.flipbayareahouses.com/images/Ripon5_1.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/images/Ripon5_1-thumb.JPG" width="175" height="116" alt="" /></a>
</td><td class="three"><a href="http://www.flipbayareahouses.com/images/Ripon6_1.html" onclick="window.open('http://www.flipbayareahouses.com/images/Ripon6_1.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false"><img src="http://www.flipbayareahouses.com/images/Ripon6_1-thumb.JPG" width="175" height="116" alt="" /></a>
</td></tr><tr><td class="three"><a href="http://www.flipbayareahouses.com/images/Ripon4_11.html" onclick="window.open('http://www.flipbayareahouses.com/images/Ripon4_11.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false">New Sink</a></td><td class="three"><a href="http://www.flipbayareahouses.com/images/Ripon5_1.html" onclick="window.open('http://www.flipbayareahouses.com/images/Ripon5_1.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false">Kitchen</a></td><td class="three"><a href="http://www.flipbayareahouses.com/images/Ripon6_1.html" onclick="window.open('http://www.flipbayareahouses.com/images/Ripon6_1.html','popup','width=550,height=367,scrollbars=no,resizable=no,toolbar=no,directories=no,location=no,menubar=no,status=no,left=0,top=0'); return false">Floor</a></td></tr></table>

<strong><u>PROJECT GOALS</u></strong>
We needed to make all of the improvements as outlined, and have budgeted as follows:
Roof and gutters - $8,500
Paint Interior/Exterior - $2,500
Master Bathroom - $8,000
Slider/Floor repair - $1,500
Clean up and Refuse Disposal - $1,000
Miscellaneous Improvements and Changes - $2,500
Holding costs (3 months mortage, taxes and insurance) - $4,500
OOPS! fund (in case things don't go as planned) - $5,000
TOTAL BUDGET  ----   $31,500

<strong>TARGET SALES PRICE -- $440,000
<u>ADJUSTED COSTS        -- $401,500</u>
<em>PROFIT                         -- $  38,500</em></strong>]]>
   </content>
</entry>
<entry>
   <title>Mortgage Insider News</title>
   <link rel="alternate" type="text/html" href="http://www.flipbayareahouses.com/archives/info/mortgage_insider_news.html" />
   <id>tag:www.flipbayareahouses.com,2007://1.2</id>
   
   <published>2007-02-01T14:44:48Z</published>
   <updated>2007-03-09T23:53:32Z</updated>
   
   <summary> For this exciting project, we chose a loan that offered the lowest cost to originate since this was a non-owner occupied purchase and Tim was not going to hold the property for a long period of time. Also, we...</summary>
   <author>
      <name></name>
      
   </author>
         <category term="Info" scheme="http://www.sixapart.com/ns/types#category" />
   
   
   <content type="html" xml:lang="en" xml:base="http://www.flipbayareahouses.com/">
      <![CDATA[<img alt="hhensley_photo.jpg" src="http://www.flipbayareahouses.com/images/hhensley_photo.jpg" width="114" height="118" />

For this exciting project, we chose a loan that offered the lowest cost to originate since this was a non-owner occupied purchase and Tim was not going to hold the property for a long period of time. Also, we chose a loan product that offered the lowest payment Without having "negative amortization" or a pre-payment penalty.  Another important feature we considered was future investments.  ]]>
      <![CDATA[We wanted to make sure that if Tim decided to 1031 exchange his gain into a new property that he not be held hostage by the "debt relief" rule under 1031.  We did not include his taxes and insurance with his payment as this would just needlessly tie up his working capital.

In choosing any loan product you must consider costs.  Non-owner occupied financing is more expensive than owner occupied financing since the lender has a greater risk of default.  Typically a lender may add up to 1.5% points to the cost of obtaining a non-owner occupied loan.  In Tim's case, we financed that fee into his interest rate.  In other words, Tim will pay a higher interest rate rather than pay the 1.5% up front.

Generally if you are going to hold a property for a long period of time, you may want to consider lowering your interest rate by pre-paying interest in the form of points.  In this scenario, you pay up-front for the benefit of a long term lower interest rate.  This does not make sense if you are going to keep the property for less that the break-even point which is more often than not around the five year mark.  Therefore, Tim chose a loan with no points.  

While Tim has chosen loans with negative amortization in the past and understands the benefits/risks of those loans, most of those loans have a minimum of a one year pre-payment penalty.  Since Tim's plans are to sell the property before a year, we chose an interest only loan with no pre-payment penalty.  The interest only loan allows Tim to make a lower payment than the traditional fully amortized loan.  We chose the 10 year interest only product because surprisingly enough it was better priced than the shorter terms of 3 or 5 years.

Debt relief occurs when a mortgage or loan is paid off at the sale of the old property. For the IRS, this is considered taxable unless 1) the exchanger can replace the old debt with an equal or larger new loan OR 2) the exchanger increases the amount of cash invested in the new property by the amount of debt relief.  Since lenders look for higher down payments on non-owner occupied properties and charge a hefty price for secondary financing to increase- the- loan to value above 80%, it made sense for Tim to put 20% down on this purchase.  The result was two-fold.  Tim kept his loan costs down and minimized the chance of getting into a debt relief situation on future purchases.

Taxes and insurance can be included with the loan payment or paid separately.  If one chooses to include them in their payment, their cost of closing increases dramatically.  Since this is a short term hold, there was no reason to needlessly tie up working capital for impounds.  

In summary, Tim purchased his latest "flip" property utilizing an interest only loan product with no pre-payment penalty and he paid no points for the loan.  His loan is fixed for 10 years and his interest rate is 7.25%.  

For more information on this or other loan programs, please contact:
Hilda Hensley
Mortgage Solutions Inc.
Office: 707-259-5272
Mobile: 707-529-8377
Fax: 707-252-9578
Email: hilda@msinapa.com
Website: <a href="http://www.msinapa.com/">More Information</a>]]>
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