4125 NE Ainsworth St., Portland, 97211
This cute 1951 Ranch style home needs a bit of TLC, but it has a great location going for it near New Seasons, restaurants, coffee shops and public transportation. It also sits right across the street from Fernhill Park. The home features 2 bedrooms, 1 bathroom, an open floor plan, gas fireplace, attached garage and oversized lot/large fenced yard. So much potential here!
Asking $479,000
What’s up with cosmetic fixers? What are they? What’s the difference between a “fixer” and a “cosmetic fixer”? Here is a quick guide to cosmetic fixers. I’ll answer these questions and talk a bit about how buying one could be the best way to get into a busy market and what to look for.
First, let me explain what I mean by a “cosmetic fixer”. These are homes that structurally and mechanically are in good shape but look outdated, dirty, or generally unattractive. Cosmetic fixers can be condos, townhouses, single-family or multi-family homes.
In short, a fixer is a property that needs A LOT of work and may not even be livable (lacking heat, missing flooring, open walls, mold/mildew, etc). They are priced significantly under the average price for a similar property in the same area that is “move-in ready”. Fixers often require cash to purchase the home as lenders may not provide financing for them. A cosmetic fixer is a home that has “good bones” meaning its main systems are functioning well and it’s livable, but it may need a deep clean and some minor t0 significant updates to the cosmetics. Cosmetic updates might include things like carpet, paint, countertops, cabinetry, fixtures, tile, and the list goes on… It can also generally be financed as well because while it may need a deep clean and updating it is still in liveable condition.
If you’re looking for a cosmetic fixer, you will need to look past a home’s popcorn ceilings, chipping vinyl floors, or dirty, threadbare carpeting and take a good look at the functional aspects of the home. The structural components of the home, like the roof, gutters, siding, windows, and doors should be in generally good to average condition. The mechanical components of the home, like the furnace, ac, plumbing, electrical panel, and ventilation should also be in good to average condition. Your realtor can point out things to take note of and share their experiences, but you should always rely on the expertise of a home inspector and/or trusted contractors to verify the condition.
Whether you are a first-time buyer looking to get into the market, someone looking to buy a second home, or an experienced investor, there are some things to consider first. Mainly, does your budget allow you to make the needed repairs? If you’re getting a loan to buy the house, you’ll want to look at the funds you have available after your downpayment and closing costs. Do you have enough money to make the repairs you want to do? How big is the home?
If you only have enough to cover new paint, some new hardware for cabinets, and an appliance or two, maybe a “light” cosmetic fixer or a more modest-sized home is best. If you have enough cash to replace all the cabinetry, re-do the bathrooms, replace light fixtures and flooring, you’ll have more options.
A way to stretch your budget as a first-time buyer, or someone who intends to live in the home as they fix it up, is to prioritize your repairs. Decide what needs fixing or replacing before you move in, what items you can do in the first year, and what things you can live with for a few years while you save up for the next project. Does the carpet need replacing or does the asbestos popcorn ceiling need to be removed? You might decide to do these items before you move all your stuff in and live with the 1970s kitchen for a while. If you go this route, keep in mind that you’ll also have regular home maintenance things to budget for as well. You may be saving for a new bathroom, but don’t forget to put a few dollars away to re-caulk and touch up paint the exterior next fall or to have your ac and furnace serviced regularly.
Well, if you’ve read this far, I think it could be! Deciding to buy a cosmetic fixer means that you have the vision for what a home could be with some TLC. It also means that you’re committing to a bit of a project. Cosmetic fixers can work for many types of buyers. Maybe you’re handy, you like a DIY project and plan to live in the home as you fix it up. Or maybe you’re planning to hire someone to do all the updates right away so you can move in and enjoy the freshly updated space. You might have an eye for design and see a cosmetic fixer as an opportunity to choose your own finishes and make a space your own vs buying something in great shape that doesn’t match your style. Maybe you see it as an investment opportunity and plan to fix it up to be more desirable to more people and sell it for a profit. Whatever your plan is, cosmetic fixers can be a good option for lots of buyers!
If you’re ready to start shopping for a cosmetic fixer in Portland or the surrounding areas, give me a call. I’ll happily show you homes with potential that just need a little TLC. I love a design project and can discuss how to meet your goals and make a place your own.
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.
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.
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.
I’ll start off by saying that the market in Portland is tough for first-time buyers right now. Honestly, it’s tough for all buyers right now! We have the lowest inventory we’ve ever had, so buyers are struggling to find the right property, and when they do, they have to fight for it. Centennial is one of the outer east side neighborhoods that are still affordable with home prices averaging $341,000 and rising rapidly. Home values in Centennial have gone up 8.81% in the past 12 months!*
My buyer, Isak, was in the same boat as a lot of other buyers out there. Some wonderful clients of mine who had also just bought their first home in Lents last year referred him to me (thank you!). Isak was ready to take advantage of the great mortgage rates and buy his first home. He is smart about it as well. His plan is to get a roommate or two to help offset the mortgage and possibly keep it as an investment property one day.
Along the way, we found, made offers on, and lost out on a few homes. We were up against investors with large cash reserves, sellers who were reluctant to work with buyers on necessary repairs, and multiple other buyers writing offers just as competitive as his. Isak took his time finding the right home and wasn’t one to jump on the first home that came around. He was lucky enough to have to move right away, so wasn’t in a time crunch to find something. This worked to his advantage. We were able to look at lots of homes that could work but ultimately didn’t feel ‘right’.
When we came across ‘the one’ Isak knew it was special. This 3bd/2ba home in the heart of Centennial checked a lot of his boxes. The house has an extra room that could be made into a 4th bedroom, music room, or office. It also has a basement for projects or storage and a two-car garage with a separate workshop area. To top it off, it sits on a large lot with a big front-yard filled with giant Douglas Firs providing shade and privacy. The house itself is cosmetically dated, but overall in great condition with a functional layout. The previous owners lived there for over 30 years and took excellent care of it. This is perfect for Isak because he can focus on the fun and creative updates.
We close today, and I’m so excited to hand over the keys to his home. Congrats Isak!
*Source: NAR RPR (Realtor’s Property Resource) https://www.narrpr.com/
Pandemic …. Smoke …. Gresham speed traps ….
Chris and I are not letting anything stand in our way to meet a deadline for a clients home. This fixer is due to hit the market in a week. Our workers haven’t been able to get as much done during the 3 week time frame as we were given. That’s when we pull out our BIG brushes and get to work. Here is my dearest work partner painting away along side of me. Our clients don’t know that we are the one’s painting the exterior of the home and we don’t plan on telling them. When you give someone your word that you will make it to market on a chosen date, then you suck it up and do whatever is needed to make that date. I love how Chris and I work together.
He truly is the best work buddy.
My friends call me the old house whisperer. I’ve been working on houses for that last 25 years, before I became a REALTOR®. I enjoy restoring them, updating them, changing their flow, injecting them with color — bringing them back to life when they have become worn out. All houses speak to my heart but worn out houses really whisper to me.
A new potential client contacted me on a referral from a dear friend. Steve had already interviewed a couple of great agents before meeting me and was transparent enough to tell me he would likely use one of them. I like transparency, so I immediately liked Steve. He went on to say that since he had promised our joint friend that he would meet with me, making good on that promise – we should have coffee. Suffice to say, that first coffee was the start of our friendship and my commitment to do everything in my power to transform Steve’s tired rental into a profit. (He was swayed pretty easily) I remember much of our first conversation had a lot of “what-if’s” —- ‘Can you really do all the work you say you can do and stay on a tight budget? How do you know the work will really pay off for me? What if I give you money to work on my house and we lose money? Can you really get it all done in less than three weeks? Can you make all the decisions and I stay completely out of it? As in, I wouldn’t even have to come to the project or do ANYTHING and you can work with my tenant whom is living in the home? Can you help me with the move and hire people for me to move of all of the tenants possessions as well?
I said yes to all of Steve’s questions. Then I went to work on his house, spending three weeks beautifying and making it come to life. I’m proud of how it turned out. Proud that I did what I said I would do.
The house listed the house for $429,000 — Six offers received —- Sold for $458,000
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Tracy Dau
971-275-0387
tdau@livingroomre.com
My real estate partner, Chris Speth, has always reminded me of a character played by Harvey Keitel in the movie Pulp Fiction. That character is called “The Wolf”. Technically, the Wolf is a cleaner, which is a person that is brought in to fix a messy situation in a hurry. You call them to do the job that you personally don’t have the skills to do. Cleaners are specialized people who remove incriminating evidence from a crime scene (usually one involving murder) in order to make the legal consequences of the crime go away. Cleaners flip a scene, shake things up, and transform a space so that it is whole again. The house with stained carpet ✔ (taken care of), the house with the car that needs to be removed from the garage ✔ (hauled off), the filth and decay ✔ (bleach does the job), lastly, the multiple dump runs to clean the scene ✔ – done (by Chris personally- using his trailer). Being a great REALTOR® is one thing, but being a combo ‘cleaner/realtor’ is something so incredibly special; it’s like having a bad-ass Tinker bell sitting on your shoulder protecting you at all times.
Elite cleaners, like my partner Chris, often work for agencies (government or boutique firms). You rarely hear about them because they are quiet and humble – stealth-like. You might hear a whisper about an event that ‘might have’ happened, but you will never know who cleaned it up because the cleaner never leaves a trail. Not only does he manage to get the job done, but he gets it done with grace and style. He’s the epitome of cool under pressure. Chris uses a checklist, and then he delivers. He doesn’t over-promise to his clients, nor is he cocky—instead; he surveys the scene, gets the facts and then confidently states what his plan is. Rather jumping-the-gun and diving in to the “the really messy parts”, Chris will often come up with a plan to delegate tasks. He understands that the goal can’t be met if he attempts to do it all himself, so he has a secretive team that he calls on: Clark, Jeff, and Jimmie often divvy up the work.
When all of the tasks are completed with the highest level of attention by the team members, the results can be extraordinary. The key is to stay calm, cool, and collected throughout it all— and no one does this better than these guys. The ‘situation’ that was once needing dire attention, is now cleaned up and transformed.
A Wolf understands that he must treat his help with encouraging words and celebrate all successful clean-ups at the Space Room. Setting a holistic approach from the start of a clean-up, to consistently not loosing sight that whiskey is the perfect ending for all involved in the job. This assures everyone that the situation is under control. With a clink of glasses its done. Cleaned, listed, ‘BOOM’ – Offer in the next day!
Bobby Curtis was recently interviewed on how he finds good houses to flip. Here’s the second part of what he had to say.
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.
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).
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.
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
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 was recently interviewed on how he finds good houses to flip. Here’s what he had to say.
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.
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.
A great real estate agent, dependable contractors, a personal support network, and a reliable financial source.
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.
Real Estate Can be Transaction Based or Authentic Based.. Or BOTH.
I never knew when I got into Real Estate that so much of a REALTORS® job hinges upon the agent on the other end…
Just as important as the underlying sales contract which was signed in ink, is an ongoing social contract between the buyer’s agent and a listing agent. As realtors, we don’t get to choose who we get to work with. Our clients choose us, but we don’t choose the other agent. Expectations for how we will work together: norms for communication, decision making; how unforeseen events will be handled; dispute resolution; conditions and means for renegotiation; and the like are unknown from the start (unless you have worked with that agent in the past). Sure, we are required to work from a code of ethics, but there are still some rotten apples in our industry, agents with BIG ego’s that are unresponsive, inflated, over-confident or lazy. Most of us that have been doing real estate for awhile have an “A” list of agents we love, and a “D” list. Some have “F” lists too. Thankfully, mine only has three names on it.
The best real estate agents follow the common goal of closing on a home but also have a clear focus on being genuine to one another. In a genuine relationship, both parties are responsive to each other regardless of the situation. Both sides can negotiate their clients needs – but do so fairly. A transaction can become more personal when an agent takes the time to share a fuller picture of their client and their client’s fears. Building authentic relationships in real estate is not complicated, but it does take patience and a shift in focus. Instead of measuring success by the number of deals closed, we can measure it in smiles and gratitude.
I have another “A” agent to throw onto my “A” list. Charity Adams. She worked hard to facilitate a safe environment for her client to feel heard. My job was to listen. The result – A happy buyer and a happy seller.
