The Right Project House for First Time Buyers

Right now, when it feels like there is 1 house for every 10 buyers out there, many buyers are having to adjust their expectation in a house. And if they see something they think will meet their needs, they are often writing an offer. Interestingly many of these buyers may have started off with a laundry list of what their needs are. As their offers have been rejected, they have boiled that list down to what their true needs are. In doing that, some buyers are considering houses that have the prime elements they are looking for, and then rely on the future renovation projects they will do to get it the rest of the way there.

Best Bang For Your Buck

Here are my thoughts on what projects new buyers should focus on. Buy something you can move right into (or move in within 60 days). Most traditional loans require buyers move in within 2 months, so find something that is livable. When it comes to projects to take on, consider the things that traditionally increase the value of the house. The kitchen and baths are a great start.

If you’re willing to do more updates, consider something that doesn’t need structural changes, or changes that will require an architect. Pulling in an architect increases costs exponentially. It also usually means city building permits are necessary in order to make those improvements. Many cities are back-logged right now, and might not even be able to look at those plans for 3 months. Stick to surface updates like paint, flooring, and lighting. For a handy person, those are even things you can do yourself. Thoughtfully updating these, along with the kitchen and baths, will typically bring back a high return for what you investment.

More Than Cosmetics

While I recommend generally staying away from houses with structural issues, making updates to the electrical can be easy enough, and is one of the most important upgrades to make when it comes to safety. Do yourself a favor though and hire a licensed electrician. If you find a home you love that has 2 prong outlets, no GFCI protection in kitchen or baths, or has an unsafe electric panel, these are prime for upgrading. Not only will it be safer, it adds modern conveniences. You will need these kinds of upgrades later down the road anyway to make further improvements in the house that you really want. While this electric project could average between $7,500 – $10,000 or more, if you’re buying in a market where the average cost of a house is over $500,000, that doesn’t feel like too much.

Looking for more of a project? Here are some tips for something more extensive: Click Here.

 

My client, Tasa’s home remodel

In 2018, Tasa, reached out to me because she wanted to flip a house. I didn’t know it would lead to this, but since then, we have spent many hours talking about house remodeling, key improvements, and how to ensure a profitable investment. Just finishing up her third successful home remodel, I wanted to share some of her work with Kara Mack on Afternoon Live. Below are a few before and after photos. For the full 8 minute segment, and more of the work she did to the house, check out the link below.

My Client, Tasa’s, Third House Flip

Multifamily Houses in Portland

Today I talked with Kara from Afternoon Live about multifamily houses in Portland. To see the full 7 minute video, click here

Multifamily Duplex In Portland

Here’s an example of a duplex that was for sale in Portland that I thought was a great long term investment.

  • 1950s side by side 2 BR/1 BA multifamily (duplex) with Tuck-under garages.
  • It was already vacant and in extreme disrepair when we bought it.
  • NE Portland- Alberta Arts area. 
  • Current 2 Bedroom rentals are roughly $1600-$2200
  • Current 3 Bedroom rentals are roughly $2500-$3000/month. 
  • We decided to finish the lower level, adding additional bath, bedroom, and bonus living space. Each unit will now be 3 BR/ 2 BA.
    • Better use of space (more people can live in the property)
    • By adding this additional finished space, it will bring in more rental income to cover the cost of the renovation work 
    • That extra monthly income will pay for the additional renovation work over 8-10 years.
  • By updating everything, there will be few if any large maintenance expenses within the first 7 years. This makes profit and loss a little more predictable.

Not in the buying market or interested in multifamily, but thinking of selling your home? Check out my tips here. 

 

Grant Park Fixer with All the Potential.

Desirable 1920’s Grant Park bungalow with 1476 SF of main floor living. Great living in this home with a 450 SF living room which opens to the bright formal dining. Original glass doorknobs, protected hardwood floors, built-ins and intact fir moulding + picture rails. Walk and bike score of 91 & 98.

Adjacent kitchen with partician wall to eat-in area, ready for a redesign and demanding to be opened up. Original bath with classic built-ins, cast-iron tub, and hex tiles.

Finished stairway leads to a spacious 700+ SF unfinished attic with workable 10+ foot ceilings. Room to add 3 beds + additional bath up. Don’t miss the lower level. Enough space for a separate living quarters.

2 bed | 1 bath | 3346 sq. ft.
MLS# 20689267  | Taxes: $5766 | Lot Size: .11 Acre

 

 

Her First Home Renovation

I Want to Fix Up an Old House

Tasa first reached out to me in 2018. She had seen some of the work I’ve done, and expressed a deep interest to buy and renovate a house. She also “warned me” she had no home renovation experience outside of her own, but as a professional home stager, she had design sense.  Had work was second nature to Tasa, and that she had a successful janitorial business for over 20 years helped.

That said, we started off on the journey to get Tasa ready to take on a renovation project. From finding a funding source, to vetting contractors, we went through many of the ins and outs of house flipping.

The Modern Kenton Ranch

Nine months later we found this sweet Portland ranch in the Kenton neighborhood. Because she was skeptical at first, Tasa passed it up. While it was a smaller size house, which was appropriate for her first project, it was still in pretty rough shape. It was certainly rougher than what she was looking for. After weeks of searching, I asked her if she would reconsider the Kenton house. We went back for another look, and something changed. All of a sudden she was ready to go, and this time around Tasa knew this was the renovation for her.

And so it was.  We wrote that offer. Her offer was the only one, and the sellers accepted. While I knew she had it in her, I was impressed every step of the way. Her quality job and dedication was distinct, and she spent almost everyday at the house until the renovation was complete, including her birthday. She expressed to me that taking this leap was something she had talked about for 10 years. I’m very proud, and it’s been a privilege to work with her. It’s not a surprise that she’s already onto her next renovation. That one will be coming soon in Milwaukie, Oregon.

 

 

 

Interested in other home renovations, check out this Portland Farmhouse I restored in the Montavilla neighborhood here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

Contractor Tips on Winterizing Your Home

I stopped by the studio at KATU to talk about winterizing your home. It’s safe to say there’s nobody I’ld rather talk about this with, than this woman right here. Tra’Renee is so much fun. Below are the highlights.

  1. Put in Storm Windows
  2. Clean Gutters and divert water away from your house.
  3. WIFI or Programable thermostat
  4. Replace your furnace filter
  5. New frost proof hose bibs or shut off valve to old hose bibs
  6. Bucket of salt

Wondering which thermostat to install or what the long, green corrugated thing is? Or just want a laugh? Watch the 6 minute interview segment here

And for Contractor Tips from me for your next home remodel click here

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

 

Tips for Selling Your Home Faster

Professional House Flipper and Real Estate Agent, Bobby Curtis gave tips on how to sell your house faster in this “neutral” market. See tips below or click here to see the full interview on KATU’s Afternoon Live with Tra’Renee.

Price it Right- Sell Your Home Quickly

1.Price it right- don’t hold out waiting for your buyer. It may work on occasion if you have a very unique property- but let someone in the real estate business be the judge of that.

Effective Staging- Sell Your Home Quickly

2.Effective staging. Of the homes that sell within the first week on the market with multiple offers, most of them are staged or appear staged.

Stay In Contract- Sell Your Home Quickly

3.Once in contract to sell your house, stay in contract. Negotiate after they do their inspections.

Hire a Great Agent- Sell Your Home Quickly

4.All of this will be made easier if you are working with a great real estate agent.

For more from Bobby, and some great contractor tips for your next home remodel, click here

Flipping Houses: Interview with Bobby Curtis Part 2

Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s the second part of what he had to say.

1. What are the key financial considerations real estate flippers should think about before they begin a new project?

Make sure you have a reliable financial source that will bring you all the way through the project. Be financially okay to keep the house longer than you need to so you don’t run out of money. Only dip into your own money that you’re willing to lose. I normally don’t recommend using retirement money, or your personal home as collateral.

2. How do you determine a budget when it comes to flipping a property?

First I figure out what work the house needs, and then I figure out what I can buy it for.

A good general rule is that you can purchase a property for 75% of the after repair value (or what you’re going to sell it for) minus the cost of repairs. For example, if I can sell a house for $400,000 after I put $50,000 into it, ($400,000 * 75% – $50,000 = $250,000).

3. Why is project management so important in house flipping?

Timelines, schedules, budgets and great communication with your contractors can make or break how successful your flip is. You or another project manager who has your same interests down to core should be there every day there is work being done. Not all day long, but checking in. I recently took a 5 day trip to Alaska Ain the middle of a project. Even with a crew I’ve worked with for a while, things get handled differently (better) when someone in charge is there to check in, make decisions and overcome challenges.

4. What are some key mistakes that can make house flipping a flop?

Interesting you should ask. I did an interview answering just this question. Click Here.

Here are the nuts and bolts:
A. Putting in materials and finishes that don’t work. Make sure people are already buying houses with the design ideas you are using.
B. Buying a house with no good comparable houses
C. Putting a house up for sale before it’s 100% complete
D. All D-I-Y work
E. Taking too long

5. Anything else to add?

You can only do so much thinking about it and research. If you want to flip houses, you have to get things in place, buy a house and get started. You will learn things along the way. When things get tough, bring in experts in the area you are struggling in. It will be one of the best decisions you make. Miss part 1? Check it out here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

Flipping Houses: Interview with Bobby Curtis Part 1

Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s what he had to say.

House flip – stately home in NW Portland

1. How do you find a good flip?

I find a good flip by keeping my eyes and mind open. It’s not just about finding a distressed house that needs work. There are many people out there flipping houses. I’ve discovered I need find something that presents a challenge that other people (flippers) don’t want. And I have to get creative to solve a problem in a way many end buyers will love.

2. What are the key steps to successfully flipping houses?

The key steps are:

A. First, hire a great real estate agent who is an expert in the area you’re looking in, and knows a thing or two about fixer uppers
B. Buy a fixer upper at the right price, and make sure there are good comparable houses for the price you plan to sell if for fixed up.
C. Get solid estimates for the work that needs to be done, and hire dependable contractors to do the work

D. Hire a cost-effective designer, or be one yourself. This is not a time to try out your super specific design ideas. You want something that will appeal to most
E. Get it done, and do it quickly without compromising quality. My goal is 4-8 weeks. If this is your first flip, don’t go over 3 months. Ideally you want to buy the fixer and sell the fixed up house in the same market.
G. And finally, sell it. Don’t nickel and dime the buyer who places their offer. You will often give more than you want to. That’s okay if you’re making enough money on it.

3. What should real estate flippers have in place to make sure the process runs smoothly

A great real estate agent, dependable contractors, a personal support network, and a reliable financial source.

4. What’s your best advice for working with and managing contractors? How do you cut ties with a bad contractor legally?

Very good question. I’m professional, and I hire professionals. That doesn’t mean the best price, because WHEN shit hits the fan, you want to know you can count on them. I hire a mix of contractors who do the work themselves, and larger companies who have crews. Equally as important is I work with people who specialize in fixers, not new construction.

I’m in this for the long haul, and most people who want to get into flipping houses usually want to do more than one. So, if I cut ties with a contractor, I usually give them more than I think they deserve and just agree not to work together again.

Lastly, reputation is important, and frankly you’re very exposed when you flip a house. If they want to make things difficult for you, they can. Most of the time when you want to part ways, they do too. So, shake hands and agree to be done.

Interested in Part 2? Check it out here.

Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

 

Investor Special in Overlook!

Just Listed!

 

1915-1917 N Webster Road

Portland, OR, 97217

 

 

Investor special in Overlook!

 

Beautiful Old PDX style duplex with character and updates.

2 Units, Perched above the road with SW views from large second floor windows, hardwood floors, storage, yard, spacious basement with storage rooms, updated electrical panel, attached 2 car garage, large covered porch.

Do not disturb tenants.

 

ONLINE TOUR

 

 

4 BED | 2 BATH

3,040 sqft

Offered Price $ 509,000

 

 

 


Thinking about selling? Find out what your home is worth at realestatebyjuliarobertson.com

Julia Robertson | Living Room Realty

Broker Licensed in Oregon & Washington

541-505-1111 | julia@rebyjulia.com

Hip Restored Roseway Bungalow #2

Hip Roseway bungalow with restored original charm, and well appointed modern updates. Experience the great vibes on the light-filled main level with picture windows, craftsman millwork.

The great open layout and new custom kitchen will likely draw you in.

The finished lower level has a bedroom, full bath, laundry, bonus room, and a separate entrance, Great for Airbnb or a future accessory dwelling unit within the house.

The large fenced and private yard with mature plants make it inviting. There’s also a covered porch and two-car garage. Fresh paint, new fence, newer roof, furnace, and water heater.

3 bed | 2 bath | 1792 sq. ft.
MLS# 19317951 | Taxes: $4575 | Lot Size: 5500 sq. ft.
Bobby Curtis
Principle Broker
Licensed in Oregon
Licensed Contractor
CCB# 215071
503-502-3066

 

 

Like NEW! NE Portland Remodel

There’s no house I’d rather renovate than one that’s been in the same family for years. When a house is turned over from one family to the next, with each family comes new ideas, styles, and a new set of renovations. Over time there is often little of the original character left, and what is there is masked by designs from each decade and each new owner.

So when we discovered this 1945 ranch had been owned by the same family since about 1950 and they did not do updates every ten years, we jumped on it.  Added bonus- it was a solid  house and the family maintained it well over all of those years. Here it is: 8603 NE Dyer St, Portland, OR 97220

And here is what we did. Starting from the outside, we knew the roof needed to be replaced, but weren’t anticipating having to remove three layers first. We replaced the roof, and removed the large drop arm awnings and dated barred glass door. Any time I see bars over window and door and large awnings, I always remove them. This is a safe neighborhood, and there was a great solid wood door behind those bars which you really couldn’t see. The awnings, while they kept out some of the heat, they also kept out light which now comes shining through these great midcentury windows.

The living room had rare wooden vaulted ceilings for this era of house. We freshened up the space, replaced the carpet, got rid of the wood paneling from the walls, and added a large, new modern light fixture.  This room now feels completely inviting, and one you want to hang out in.

The dining room was centered in what I would consider the walkway from the front door. We removed the chandelier, added a flush mount modern light fixture, and moved the dining area in front of the window which overlooks Rocky Butte. Under this carpet we discovered white oak hardwood floors. With some sanding and a few coats of polyurethane, they turned out better than new. What you see here is the natural color of the wood. No stain needed.

Oh this kitchen…while cute (and who can resist that horse rocker), it lacked functional space. The refrigerator was in front of the sliding glass door, and kitchen overall needed more storage. We swapped the fridge location and the coffee bar (and built a smaller one), and made room for a new large pantry. We kept and restored the solid wood cabinets and added butcher block counter tops to warm it up. With new appliances and the benefit of a dishwasher, this kitchen functions much better.

The master bedrooms, and all the bedrooms for that matter, are gleaming with the new refinished floors and a fresh coat of paint. These light fixtures were original and in good shape, so of course we kept them. You may notice wall cadet heaters were in all of the rooms. That’s how the house was heated. We opted for a major upgrade with all new ducting and a high efficient furnace. No more electric heat.

The bathroom layout worked, but it felt small and was dark. We brightened it up with white walls and wall tile, added a large mirror and some stylish, bold blue floor tile.

The exterior is one of the highlights of the house. It sits on almost a double lot, with a spacious front, side and back yard. There’s even RV parking for the adventurous spirits. The patio is inviting, and neighborhood is pretty quiet for how busy Portland has become these past several years. This house is solid and beautiful, and ready for the next family. No renovations needed.

If you want to see more of this house, it’s for sale now. Check it out here: 8603 NE Dyer St, Portland, OR 97220 

 

Bobby Curtis
Principal Broker
Licensed in Oregon
Living Room Realty &
Licensed Contractor
CCB: 215071
503-502-3066