Guys, I don’t even know how to start this post. Our life has taken some major turns in the last few months. They have been super exciting, but also very nerve-wrecking at times. So… I’m going to start from the beginning (ish). If you’ve been following along, this first section will be a recap.
RECAP OF THE LAST YEAR
About a year and half ago, we were midway through a kitchen renovation which would complete the 3 year long whole house remodel on our first home. Jake and I had both switched jobs a few months before. Mine was working out well, it afforded me the work-life balance I was looking for. But, Jake’s was not. So, November of 2017 Jake left his job, unsure of what was next.
That started us on a journey where we evaluated what we really wanted to do with our lives, and how we wanted to make a living. It was a long and sometimes painful process of discovery that changed almost weekly. But ultimately we knew it involved fixing up houses in some way, shape, or form. And it began by selling our first home to allow us to buy another to rehab.
With that direction, Jake set to work finishing all the final touches of our home, and by March 2018 we sold it.
We found some temporary housing and started looking for our next project. It took several months and we saw quite a few fixer uppers, but ultimately we purchased a hoarder house last July, 2018. Man was it a whirlwind experience… But we had the summer of our lives, sorting through the stuff left there, demoing everything, dealing with that crazy house.
From buying that house last summer, we learned a couple things. First, it was just too beautiful for us to leave. Even though the most dollar-wise way to flip is to do a live-in, we couldn’t sell this one once we are done, we fell in love. Second, after living through our second renovation, I just don’t know that I am cut out to do that very many more times. It’s just rough.
2019 UPDATES
By February this year, we had finally gotten to a comfortable state in our house. Meaning that 1 bathroom was complete and the kitchen was done, and the majority of the house had flooring and new paint. We knew it was time to start searching for the next house. But this one would have to be different, it wouldn’t be a live-in.
Back when we were selling off the remains of the hoarder house last August, Jake met a lady at one of our sales who shared that she was trying to sell her house. Jake asked her how it was going and she shared with him some of the details of the deal she had been offered and her situation. It seemed a little sketchy, with them only offering to pay her 50% of the purchase price at closing, so he politely advised her to be careful.
Fast forward to February 2019, we began exploring the logistics of buying an investment house to flip. It was a Thursday morning that Jake told me he was going to research the various financing methods to see what (if anything) we could do. He spent the whole day reading about debt-to-income ratios and bank lending limits and he concluded: there isn’t a way we can afford to do this. (Sidenote: yes, we have heard of all those no-money-down hard money lenders, but as fresh as we are in this business, we do not feel comfortable taking those kinds of loans without experience)
Discouraged and disheartened, a thought came to Jake: I can’t figure out the money, so maybe I should just try and find a deal. He remembered the lady at the sale had shared that she had a double lot and it backed up to a particular street. With only that information, Jake found all the double lots on the street and looked them up on the county tax assessor website. From there he could see who owned the properties and he entered each of their names in Facebook until he recognized the woman from the sale. (Major internet stalking skills, right??)
Finding the Deal
That Thursday afternoon, he sent her a Facebook message to ask if she was still trying to sell her house. She replied back, that yes, she was and offered to call him that evening. They chatted on the phone and she remembered him and the hoarder house sale, and commented that she had been wanting to reach out to him but didn’t have his contact information (kismet!).
He went Friday morning to view the house (while I was working), and he liked what he saw. The home was in definite need of rehab, but the bones were solid. It was in much better shape than our hoarder house and would be a great, marketable home to flip. Saturday morning he ran all his numbers and made her an offer. We held our breaths… I mean, this whole thing was mind-blowing. Sunday she called back and accepted!!!
We decided to complete the sale without realtors because it would save both of us a lot of money. So Jake went over the contract with her and they signed it that Monday. And boom, just like that we had a deal!!! But…. How were we going to buy it?????
But, How to Finance??
Thankfully, the seller had requested a 60-day closing so that she could have time to move out and find a place. It turned out to be the greatest blessing because we needed every one of those 60 days to figure out the financing.
We spent a week of agonizing, exploring all our options… you know, even the ones that make you queasy because they are so financially risky. In the end, we knew. Jake would have to get a job in order to finance this flip. Even though it felt so counter-intuitive because the whole goal is for Jake to flip as a job. But, we knew this would be crucial to get us started on this process, even though it would be hard for us both to work full time and try to flip this house and hope to make any more progress on our own home.
New Beginnings!
Praise the Lord: after 3 weeks of applying and interviewing, Jake accepted a position at a great company. And, as if we couldn’t already see the Lord’s hand in all of this, Jake’s new job is in my work building!!! Insane, right?? We’re going to be able to drive to work together, and have lunch together, and afternoon walks! 🙂 It’s all a little scary, but we feel undeniably blessed by God’s provision in all of this and how He is weaving this crazy little story together.
We closed yesterday on the house… so be ready for a post all about this new and exciting project and to hear all about why we had to call the cops right after closing… And I still owe you a final kitchen post in our Hoarder House, coming soon as well, hopefully.