In one afternoon Tim walked two houses. In Pennsauken he offered the full $210,000 asking price on a house that needs about $50,000 of work. He figures he is in for about $300,000 all in and could sell for $330,000 to $340,000. In Woodbury Heights he passed on a log cabin and decided to look at the land instead.
The Pennsauken house: the math, out loud
The sellers were still living there and asked for no photos or video inside, so you only see Tim outside. He was honest about what he found. Termite damage on the sills. Structural issues on the block in the basement. A crack running along the whole back of the foundation.
His verdict: "Everything could be fixed. Solid house."
Then he ran the numbers right there on the sidewalk.
| Line | Tim's number |
|---|---|
| Asking price | $210,000 |
| Tim's offer | $210,000 |
| Work the house needs | About $50,000 |
| All in, with closing costs | About $300,000 |
| Likely resale | $330,000 to $340,000 |
| What is left | About $30,000 |
| Time | About 60 days in and out |
Figures as Tim said them in the video. The house had multiple offers, so he did not know yet if he would get it.
Look at the gap between what the house sells for and what Tim pays. Most of it is the work and the costs of buying, holding and selling. The profit line is the smallest number on the sheet.
What the sellers got for that price
Here is how Tim put it to them: "I'd close whenever they want. They leave what they want. They take what they want. No inspections, no COs, no nothing."
That is the trade. A retail buyer might pay more on paper, but that buyer brings an inspection, a repair list and a lender who has to like a cracked foundation. The termite damage and the foundation crack become Tim's problem the day he closes.
The log cabin: why Tim walked away
Next stop was a log cabin in Woodbury Heights. Tim has flipped one before, but with a hired contractor, and he had never worked on one himself.
He did not like what he saw from the driveway. The front porch had been closed in. Inside, the ceilings were low for a two story house. "You feel very enclosed, very trapped," he said.
So he passed on the house as a flip. He did not pass on the lot. It is a nice street, Gateway's high school is right on it, and there is a newer house next door. His next step is to check the land value and see whether it makes sense to take the cabin down and build.
If you are thinking about selling
A cash offer is not a mystery number. It is what the house will sell for after the work, minus the work, minus the costs of buying and selling, minus a profit that makes the job worth doing. Tim says that math out loud. The house that needs the most work gets the biggest deduction, and a house that will not work as a flip can still be worth something as land.
If your house has termites, a cracked foundation or a layout nobody wants, here is how selling as-is works, and here is our process from call to closing. When you want your own number, ask for a cash offer or call Tim at 856.685.6455.
