Newbie doing Condo Live-in Flip

San Diego, California
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Newbie doing Condo Live-in Flip

Sarah Enero
Member since 2022 · 15 posts · 11 votes

Hello everyone!

I'm in escrow for a one bed/one bath condo I want to do a live-in flip. I know going into this, I will have to deal with HOA but because of budget, I can't afford a property to house hack in San Diego and I figured a condo will help me get started given I'm also a 1st time homebuyer.

After inspection there were no red flags, just minor repairs that the seller is taking care of now. As someone who's very new to this, (and doing homework by reading BRRRR book among other RE books and listening to BP podcasts), I have some questions that I would like your thoughts on.

1. Might be too silly (like I said I've very new to this). I wanted to change windows, sliding doors and new paint done before moving in. Do I get one contractor to get such minor job? Do I get different people to do different jobs? Which is more cost and time efficient? Can someone lead me to the right direction how to go about this?

2. Eventually, I want to get the kitchen and bathroom done. I might have to get one area/room done at a time depending on budget. When I get bids, can I ask for a bid for both even though I know I might have just want to get one area/room done at  a time? 

3. With inflation so high, should I wait to get the updates done and see where things land? With the talk of possible recession, am I right in thinking there may be less renovations/remodels in the future, less demand for materials and more workers available which can lead to these updates being less expensive? or am I overthinking it?

Closing date is in a week. Then I plan to live in this condo for 2 or 3 years depending on the market then planning on turning it into a rental. Thank you for reading! 

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Chris Davidson
Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
4y

@Sarah Enero 1. You can start getting bids now while in escrow. I would recommend this if wanting to get done prior to move in. It is easiest to get them once you have closed as you have access when ever you want. However the sooner you can get them the sooner you can schedule it. Windows sometimes are a month or two out. I would look at getting individual contractors to bid each job, and you might use the same contractor or might have a few different ones. Just have them itemize the bid out by projects.

2. Get bids when ever just be upfront on when you are planning on doing the work. If you aren't getting it done soon may just look at getting a ball park so you can plan it out

3. Usually in recessions there is less renovations and remodels thus can get contractors easier. However when you tie in Inflation those cost usually go up. However when there is less demand for labor those cost usually go down. But no ones has a crystal ball. Make a decision you feel good with and keep rolling

Congrats on taking the big step keep after it!

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  • Chris Davidson
    Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    4y

    @Sarah Enero 1. You can start getting bids now while in escrow. I would recommend this if wanting to get done prior to move in. It is easiest to get them once you have closed as you have access when ever you want. However the sooner you can get them the sooner you can schedule it. Windows sometimes are a month or two out. I would look at getting individual contractors to bid each job, and you might use the same contractor or might have a few different ones. Just have them itemize the bid out by projects.

    2. Get bids when ever just be upfront on when you are planning on doing the work. If you aren't getting it done soon may just look at getting a ball park so you can plan it out

    3. Usually in recessions there is less renovations and remodels thus can get contractors easier. However when you tie in Inflation those cost usually go up. However when there is less demand for labor those cost usually go down. But no ones has a crystal ball. Make a decision you feel good with and keep rolling

    Congrats on taking the big step keep after it!

    2Reply
  • Mark Frattini
    Real Estate Agent · San Diego, CA · Member since 2014 · 338 posts · 176 votes
    4y

    Hi @Sarah Enero

    Before you get started with your renovation and upgrades make sure you ask you figure out what is going to give you the best ROI. For example, windows are expensive and don't always give you the best return. For every dollar you spend you should aim for at least 1.5x return. If you spend 15k and it only increases the value of your home by 10k then you're losing money when you go to sell. Since this is a live in flip and not your forever home just make sure the numbers make sense. They money you plan to allocate for windows and a slider may be better spent in a kitchen or master bath refresh.

    0Reply
  • Sarah Enero
    OP
    Member since 2022 · 15 posts · 11 votes
    4y
    Quote from @Chris Davidson:

    @Sarah Enero 1. You can start getting bids now while in escrow. I would recommend this if wanting to get done prior to move in. It is easiest to get them once you have closed as you have access when ever you want. However the sooner you can get them the sooner you can schedule it. Windows sometimes are a month or two out. I would look at getting individual contractors to bid each job, and you might use the same contractor or might have a few different ones. Just have them itemize the bid out by projects.

    2. Get bids when ever just be upfront on when you are planning on doing the work. If you aren't getting it done soon may just look at getting a ball park so you can plan it out

    3. Usually in recessions there is less renovations and remodels thus can get contractors easier. However when you tie in Inflation those cost usually go up. However when there is less demand for labor those cost usually go down. But no ones has a crystal ball. Make a decision you feel good with and keep rolling

    Congrats on taking the big step keep after it!

     Thank you so much! I don't know why I didn't think of just asking a ballpark figure for a bid, although I have numbers in mind but yes ballpark cost will be very helpful in planning things out. Really appreciate your time!

    0Reply
  • Sarah Enero
    OP
    Member since 2022 · 15 posts · 11 votes
    4y
    Quote from @Mark Frattini:

    Hi @Sarah Enero

    Before you get started with your renovation and upgrades make sure you ask you figure out what is going to give you the best ROI. For example, windows are expensive and don't always give you the best return. For every dollar you spend you should aim for at least 1.5x return. If you spend 15k and it only increases the value of your home by 10k then you're losing money when you go to sell. Since this is a live in flip and not your forever home just make sure the numbers make sense. They money you plan to allocate for windows and a slider may be better spent in a kitchen or master bath refresh.


    Thank you so much for this! You are definitely right, to always think of ROI when planning on what to prioritize when doing a live in flip! Thank you again

    0Reply
  • Mark Frattini
    Real Estate Agent · San Diego, CA · Member since 2014 · 338 posts · 176 votes
    4y
    Quote from @Sarah Enero:
    Quote from @Mark Frattini:

    Hi @Sarah Enero

    Before you get started with your renovation and upgrades make sure you ask you figure out what is going to give you the best ROI. For example, windows are expensive and don't always give you the best return. For every dollar you spend you should aim for at least 1.5x return. If you spend 15k and it only increases the value of your home by 10k then you're losing money when you go to sell. Since this is a live in flip and not your forever home just make sure the numbers make sense. They money you plan to allocate for windows and a slider may be better spent in a kitchen or master bath refresh.


    Thank you so much for this! You are definitely right, to always think of ROI when planning on what to prioritize when doing a live in flip! Thank you again


    Anytime!
    1. Also, I would suggest playing the role of the general contractor and finding the right contractor for each job.
    2. You can get all the bids you want now however they are usually only good for a set number of days and then they expire. At least you will have a general idea of costs.
    3. This could go either way. Right now some trades are booked 1-3+ months out. Inflation and material shortages could get worse or they could get better. Cost of labor could go up or down. I would hedge my bet on continued labor and material shortages.
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