How do you plan your rehab design?

Question

I've just created my LLC and have about 90% of the team I need to obtain my first flip. My question though is how to know/plan the rehab to make it look good for the potential new buyer?

When you look at a place, what sources do you use to plan colors, material types, layouts (if a floor plan needs redesigning)?

Is this something the GC would assist with/plan? Or is it something you collaborate together?

Any input is appreciated. Thanks!

Cassie Montalvo · Answer

For my projects, I buy all the “finishes” which are pretty much anything you can see with the naked eye (except for paint, which I just give the contractor the color codes). I will either have the items delivered or coordinate with the contractor for the items to be picked up by them. I don’t EVER let contractors buy “finishes.” I simply don’t trust their taste.

As for required, there are certain items that if you don’t have, it will cost you in either sale price or time on the market. For example, I’m in Palm Beach County and stainless steel or higher grade appliances are ‘required’ by our local buyers. I’ve seen absolutely beautiful homes for sale, but with black appliances - and buyers just can’t seem to look passed this. Even though it’s an insanely easy fix, the house just SITS on the market. Therefore, in my area, I consider stainless a ‘requirement’ of buyers. You need to identify these items in your local market.

Lastly, here’s a pro tip. Once you’re done spending tons of money on the rehab, please hire a professional photographer to take your listing photos. If you are using an agent, this should be requirement #1 from them - no exceptions!

Cassie Montalvo · Answer

NEVER let your GC pick out finishes ...EVER!

Go and research other homes in that particular area that were recently updated and sold quickly and for top dollar. Try to find similarities in the color schemes and finishes (some areas can get away with cheap counters, others have granite, some quartz, and a few are marble).  You need to be able to identify what features are REQUIRED by your local buyers, what features are liked, and which items are deal-killers.

Once you know this you can build out your design.

Also, Pinterest is your best friend for finding color schemes and cool design ideas. I usually set up a “board” on Pinterest for every house I remodel.

Megan P. · Answer

@Ryan Steiner I just started using RoomSketcher. It’s very intuitive/easy to use and you can create 2D plans and 3D fly throughs. You can also click /add finish materials and colors, along with furnishings. It’s very helpful if you have trouble visualizing, as well as being a great visual communication tool with your GC and subs. A picture is worth a thousand...dollars in some cases. :-)

Joe Jaques · Answer

@Megan P. Thanks for the tip! Seems like a useful and affordable tool ($99/yr). Especially as a long-distance investor, being able to communicate specifically with contractors is crucial.

Duane Alexander · Answer

you can also hire a designer to do this for you if you're out of your element. There are some real estate agents that can help with design as well.

Jamie Derasmo · Answer

I am new to this as well and planning my first flip to be toward the middle of this year. That was some great advice by Cassie. I would also add that a real estate agent who specializes in that market could really help out as well if you need a little extra help deciding what level of finishes to use. They are familiar with what buyers want in the market and can better help you understand what the buyers "requirements" are. Not all real estate agents will know that neighborhood/market so make sure to consult one that you know is vested in that neighborhood! Another great point by Cassie, spend the money on professional photographs!

Lori L Miller · Answer

@Ryan Steiner - i’m a newbie learning this thread and I see that Cassie gave us some great advice!￼

Lori L Miller · Answer

@Ryan Steiner I was hoping you would get some replies as I have this very same question!

Ryan Steiner · Answer

@Cassie Montalvo thank you so much for the great advice!

Now, as you figure out the designs that are good for that area, do you just relay a lost to the GC? Do you prefer to coordinate the finished materials being delivered or let them handle that?

Also, could you elaborate on what might be required by the area?

How do you plan your rehab design?

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