What was your biggest unexpected cost in a flip?
Contractor · Dyer, IN · Member since 2019 · 4 posts · 1 vote
What was your biggest unexpected cost in a flip?
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Flipper/Rehabber · Boynton Beach, FL · Member since 2018 · 81 posts · 129 votes
7yWhen the city required I updated all the electrical to include arc-faults. That same city also required full specs on nearly EVERY fixture - including the bathroom exhaust fans! Exhaust fans ... really? PS, stay away from Pompano Beach ... NEVER AGAIN
67 Replies
- Hudson VAlley · Member since 2018 · 19 posts · 7 votes7y
Originally posted by @Brian Pulaski:
Are you in NY, and want a job? $2000 and you can do that. I have a proposal for that work, French drain, DS into it, to a dry well and then piped to storm drain, $13,000... if I could do this for $2k, even $5k I would. I still may be stuck doing it, but the water has more sources than what you describe.
Also the septic was tested by the end buyer (it was a flip of mine). It failed and needed to be replaced. All new leach fields as well.
No i don't do contractor jobs, and with the business like we run you have to know how to fix things yourself. It gives advantage - instead of paying 13K for contracting you just buy excavator time for a day (600 dollars), have one-two low-paid helpers (150-300 bucks) and buy a standard set of materials (600-900). I did that 3 times in last 2 years. Usually i do a basement the last thing in the house watching the leaks during the renovation. It helps to realize what is wrong. Also i mentioned it works 9 out of 10 times. I'am not a tele doctor to give you a diagnosis over your description.
The same with the 200 amp service upgrade - it's a standard job that i finish myself in a day, saving at least 1.2K in job pay.
Do you credited the buyer for 13K or you were forced to hire a contractor to fix the septic and then sold the flip?
- Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes7y
Originally posted by @Alex Natanson:
Originally posted by @Brian Pulaski:
Are you in NY, and want a job? $2000 and you can do that. I have a proposal for that work, French drain, DS into it, to a dry well and then piped to storm drain, $13,000... if I could do this for $2k, even $5k I would. I still may be stuck doing it, but the water has more sources than what you describe.
Also the septic was tested by the end buyer (it was a flip of mine). It failed and needed to be replaced. All new leach fields as well.
No i don't do contractor jobs, and with the business like we run you have to know how to fix things yourself. It gives advantage - instead of paying 13K for contracting you just buy excavator time for a day (600 dollars), have one-two low-paid helpers (150-300 bucks) and buy a standard set of materials (600-900). I did that 3 times in last 2 years. Usually i do a basement the last thing in the house watching the leaks during the renovation. It helps to realize what is wrong. Also i mentioned it works 9 out of 10 times. I'am not a tele doctor to give you a diagnosis over your description.
The same with the 200 amp service upgrade - it's a standard job that i finish myself in a day, saving at least 1.2K in job pay.
Do you credited the buyer for 13K or you were forced to hire a contractor to fix the septic and then sold the flip?
I do a lot of my own work on houses (probably more than 75% of the other flippers out there), and very well may do this job myself. I always get proposals for larger scopes and sometimes pay it, sometimes tackle myself. I'm confident I will get rid of the water, just not sure that solution will work based on how/where/when the water comes in.
The septic I had replaced. The $12,100 was actually cheaper than it should have been and I would have credited closer to $14-15,000, so I chose to have it done. I usually like to give the buyer a ready to go house.
- Hudson VAlley · Member since 2018 · 19 posts · 7 votes7y
Originally posted by @Brian Pulaski:
The septic I had replaced. The $12,100 was actually cheaper than it should have been and I would have credited closer to $14-15,000, so I chose to have it done. I usually like to give the buyer a ready to go house.Have not you tried to negotiate at least 50% of the job to be covered by the buyer? He gets a new septic - it should be priced in sale price. We are in the hot market (at least we were last fall) and it shouldn't be that hard to find a new buyer for the house with a new septic. I wouldn't give up on 13K that easily.
- Saint Cloud, MN · Member since 2017 · 38 posts · 5 votes7y
Huh. There is always something. Some of these things can bury you. Look very sharp and don't feel bad when you buy at 60-70% of fair market value. There is a level of risk that homeowners just can't appreciate...aside from those places that are a complete dump. The place can look pretty decent but you can uncover alot of bad, even on a light rehab, that turns things into a nightmare. Note to self: Don't get into thin deals. They can destroy you.
- Flipper/Rehabber · Long Beach, CA · Member since 2017 · 155 posts · 118 votes7y
@Ann Watkins
Oh man that is the absolute worst when you make the changes to make the inspector happy then a different one comes the next time and asks for something else.
- Flipper/Rehabber · Long Beach, CA · Member since 2017 · 155 posts · 118 votes7y
@Charlie MacPherson
Man the gas company seems like they are always 3 months behind.
- Flipper/Rehabber · Quincy, MA · Member since 2016 · 53 posts · 35 votes7y
My biggest surprise was two crumbling foundation walls (one behind an old oil tank) that I missed in a quick inspection of a dark, dank crawl space minutes before an auction. None of it visible from outside. Total $25k.
- Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes7y
Originally posted by @Alex Natanson:
Originally posted by @Brian Pulaski:
The septic I had replaced. The $12,100 was actually cheaper than it should have been and I would have credited closer to $14-15,000, so I chose to have it done. I usually like to give the buyer a ready to go house.Have not you tried to negotiate at least 50% of the job to be covered by the buyer? He gets a new septic - it should be priced in sale price. We are in the hot market (at least we were last fall) and it shouldn't be that hard to find a new buyer for the house with a new septic. I wouldn't give up on 13K that easily.
It was a replace or the buyer walked deal, and the house was not worth any more with a new septic, the expectation is to have a functioning system and that's what it cost to get one. Sure I could have backed out and relisted the house but at the end of the day I wouldn't have sold it for more and it would have cost more to hold on to it. The decision wasn't just a knee jerk reaction, there was thought behind it.
- Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes7y
Our biggest extra/unexpected expenses have been plumbing issues once opened up and foundation issues that werent found at inspection.
- Rental Property Investor · NC · Member since 2018 · 776 posts · 776 votes7y
Replacing the main sewer line was the worst I have had to do... very costly.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Teri Feeney Styers:
@Phillip Cooper the building dept kicking back my plans over and over (months!) requesting one change after another (but never giving me a checklist) - the biggest being that they wouldn't approve a RBC standard fire separation formula for an up and down duplex but instead made me research and find a UL tested floor assembly and buy the specific products in the assembly design. That floor cost me an additional $7 per square foot! Not to mention the carrying costs while I haggled with them.
talk about buliding departments Portlandia is the absolute worst i have seen in the country.. any little thing is a check sheet which they have two weeks to respond to.. its insanity in that city these days.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Brian Pulaski:
Originally posted by @Alex Natanson:
Originally posted by @Brian Pulaski:
Are you in NY, and want a job? $2000 and you can do that. I have a proposal for that work, French drain, DS into it, to a dry well and then piped to storm drain, $13,000... if I could do this for $2k, even $5k I would. I still may be stuck doing it, but the water has more sources than what you describe.
Also the septic was tested by the end buyer (it was a flip of mine). It failed and needed to be replaced. All new leach fields as well.
No i don't do contractor jobs, and with the business like we run you have to know how to fix things yourself. It gives advantage - instead of paying 13K for contracting you just buy excavator time for a day (600 dollars), have one-two low-paid helpers (150-300 bucks) and buy a standard set of materials (600-900). I did that 3 times in last 2 years. Usually i do a basement the last thing in the house watching the leaks during the renovation. It helps to realize what is wrong. Also i mentioned it works 9 out of 10 times. I'am not a tele doctor to give you a diagnosis over your description.
The same with the 200 amp service upgrade - it's a standard job that i finish myself in a day, saving at least 1.2K in job pay.
Do you credited the buyer for 13K or you were forced to hire a contractor to fix the septic and then sold the flip?
I do a lot of my own work on houses (probably more than 75% of the other flippers out there), and very well may do this job myself. I always get proposals for larger scopes and sometimes pay it, sometimes tackle myself. I'm confident I will get rid of the water, just not sure that solution will work based on how/where/when the water comes in.
The septic I had replaced. The $12,100 was actually cheaper than it should have been and I would have credited closer to $14-15,000, so I chose to have it done. I usually like to give the buyer a ready to go house.
On septics i had a loan on a MHP that the owner let the entire system fail.. 250k to fix. and all the tenants had to move out.. so based on that one i will never buy another park that is not on city utls.. period.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Frank Geiger:
Replacing the main sewer line was the worst I have had to do... very costly.
since i have one for about every scenario i have one i Lake Oswego right now.. were by the time they conditioned me.. they wanted 250 feet of new 8 inch ductile iron water pipe.. its a corner lot and they wanted commerical half street improvement.. so about 200k to split one lot.. so they are getting none of it.. just going to build a nice 999k spec on a double lot and call it a day.. but i wasted a year and 20k in engineering and city fee's to try to get the split.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Phillip Cooper:
Originally posted by @Ann Watkins:
@Phillip Cooper
City inspectors on rotation, each time one came out he/she required something different with the electrical to clear it. At the end of it I was $5k outside of my budget.
The city inspectors will nickel and dime you in the Chicagoland areas as well! $50 to $150 re-inspection checks. The worst thing is they will only tell you one thing that’s wrong and leave, rather than provide an entire list to correct.
I bought one in Charleston SC.. talk about termites.. wholesaler had the deal all buggered up.. so it took about 4 months to finally close.
in that 4 months the house went from OK we can fix termite damage to its a tear down.. so we tore it down.. and then our contractor messed up on elevations and it was 4 inchs to low for flood plain .. so we had to take a brand new spec home and spend 20k raising the sucker.. after all that we sold it for 750k cash and still made just under 200k.. so in hindsight we did far better than if we tried to rehab it.. and why we are pivoting to almost all new construction these days.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chad U.:
A crumbling foundation hidden behind overgrowth AND a water main replacement which was plugged with calcium. That on top of two unscrupulous contractors stealing material. All on same job, about $15K unexpected.
when your scouting your NPN be careful in areas in the deep south with Yazoo clay those houses can be broke in half like humpty dumpty.. we also narrowly escaped a house that had a sink hole in orlando LOL
- Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes7y
@Jay Hinrichs you win! :) Those kind of numbers would have stressed me to the point of a stroke! Every time I run into these issues I worry that I have somehow financially ruined us... my head tells me that I can figure it out but my heart literally twinges...
- Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Brian Pulaski:
Originally posted by @Alex Natanson:
Originally posted by @Brian Pulaski:
Are you in NY, and want a job? $2000 and you can do that. I have a proposal for that work, French drain, DS into it, to a dry well and then piped to storm drain, $13,000... if I could do this for $2k, even $5k I would. I still may be stuck doing it, but the water has more sources than what you describe.
Also the septic was tested by the end buyer (it was a flip of mine). It failed and needed to be replaced. All new leach fields as well.
No i don't do contractor jobs, and with the business like we run you have to know how to fix things yourself. It gives advantage - instead of paying 13K for contracting you just buy excavator time for a day (600 dollars), have one-two low-paid helpers (150-300 bucks) and buy a standard set of materials (600-900). I did that 3 times in last 2 years. Usually i do a basement the last thing in the house watching the leaks during the renovation. It helps to realize what is wrong. Also i mentioned it works 9 out of 10 times. I'am not a tele doctor to give you a diagnosis over your description.
The same with the 200 amp service upgrade - it's a standard job that i finish myself in a day, saving at least 1.2K in job pay.
Do you credited the buyer for 13K or you were forced to hire a contractor to fix the septic and then sold the flip?
I do a lot of my own work on houses (probably more than 75% of the other flippers out there), and very well may do this job myself. I always get proposals for larger scopes and sometimes pay it, sometimes tackle myself. I'm confident I will get rid of the water, just not sure that solution will work based on how/where/when the water comes in.
The septic I had replaced. The $12,100 was actually cheaper than it should have been and I would have credited closer to $14-15,000, so I chose to have it done. I usually like to give the buyer a ready to go house.
On septics i had a loan on a MHP that the owner let the entire system fail.. 250k to fix. and all the tenants had to move out.. so based on that one i will never buy another park that is not on city utls.. period.
Yikes! I recently had a house under contract where the septic failed. Think sub $200k ARV SFH. Between engineering, land clearing and designing a system that fit the property they were in the $32-35k range. Needless to say we didn't make a deal.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Brian Pulaski:
Originally posted by @Jay Hinrichs:
Originally posted by @Brian Pulaski:
Originally posted by @Alex Natanson:
Originally posted by @Brian Pulaski:
Are you in NY, and want a job? $2000 and you can do that. I have a proposal for that work, French drain, DS into it, to a dry well and then piped to storm drain, $13,000... if I could do this for $2k, even $5k I would. I still may be stuck doing it, but the water has more sources than what you describe.
Also the septic was tested by the end buyer (it was a flip of mine). It failed and needed to be replaced. All new leach fields as well.
No i don't do contractor jobs, and with the business like we run you have to know how to fix things yourself. It gives advantage - instead of paying 13K for contracting you just buy excavator time for a day (600 dollars), have one-two low-paid helpers (150-300 bucks) and buy a standard set of materials (600-900). I did that 3 times in last 2 years. Usually i do a basement the last thing in the house watching the leaks during the renovation. It helps to realize what is wrong. Also i mentioned it works 9 out of 10 times. I'am not a tele doctor to give you a diagnosis over your description.
The same with the 200 amp service upgrade - it's a standard job that i finish myself in a day, saving at least 1.2K in job pay.
Do you credited the buyer for 13K or you were forced to hire a contractor to fix the septic and then sold the flip?
I do a lot of my own work on houses (probably more than 75% of the other flippers out there), and very well may do this job myself. I always get proposals for larger scopes and sometimes pay it, sometimes tackle myself. I'm confident I will get rid of the water, just not sure that solution will work based on how/where/when the water comes in.
The septic I had replaced. The $12,100 was actually cheaper than it should have been and I would have credited closer to $14-15,000, so I chose to have it done. I usually like to give the buyer a ready to go house.
On septics i had a loan on a MHP that the owner let the entire system fail.. 250k to fix. and all the tenants had to move out.. so based on that one i will never buy another park that is not on city utls.. period.
Yikes! I recently had a house under contract where the septic failed. Think sub $200k ARV SFH. Between engineering, land clearing and designing a system that fit the property they were in the $32-35k range. Needless to say we didn't make a deal.
this was a system for a 40 unit park.. I had to get an easement from a neighboring property we had to then put a pump system in to move it up hill to the new leach lines.. took a eyars and a ton of work.. without the easement that property would have died.
- Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes7y
Originally posted by @Jay Hinrichs:
Originally posted by @Frank Geiger:
Replacing the main sewer line was the worst I have had to do... very costly.
since i have one for about every scenario i have one i Lake Oswego right now.. were by the time they conditioned me.. they wanted 250 feet of new 8 inch ductile iron water pipe.. its a corner lot and they wanted commerical half street improvement.. so about 200k to split one lot.. so they are getting none of it.. just going to build a nice 999k spec on a double lot and call it a day.. but i wasted a year and 20k in engineering and city fee's to try to get the split.
Jay back when I was doing commercial development, we were putting up a nice 20000 sf office on a one acre lot on a hill abutting and overlooking a conservation area. Well after their environmental "study" we had to keep 30' back from a bunch of good for nothing thorn trees to preserve some alleged rare species of bird (probably sparrows ,lol). So that left 1/3 acre to build on, so we had to raise the building on stilts to put parking underneath. We get to the final entitlement meeting to get our last approval for building permit when a guy from the gas company comes in last minute and says there's a gas main going across the front of the property which they originally missed where our new proposed entrance way was to be moved. Find out to move the gas line would cost 400K! Instead we made a deal with the neighbor for a right of way to use their entrance and then enter into our side yard. Did this in exchange for refacing their building and redid their landscaping which cost about 75K. Better deal for all as it was an eyesore and likely raised the value of our building.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Chad U.:
Originally posted by @Jay Hinrichs:
Originally posted by @Frank Geiger:
Replacing the main sewer line was the worst I have had to do... very costly.
since i have one for about every scenario i have one i Lake Oswego right now.. were by the time they conditioned me.. they wanted 250 feet of new 8 inch ductile iron water pipe.. its a corner lot and they wanted commerical half street improvement.. so about 200k to split one lot.. so they are getting none of it.. just going to build a nice 999k spec on a double lot and call it a day.. but i wasted a year and 20k in engineering and city fee's to try to get the split.
Jay back when I was doing commercial development, we were putting up a nice 20000 sf office on a one acre lot on a hill abutting and overlooking a conservation area. Well after their environmental "study" we had to keep 30' back from a bunch of good for nothing thorn trees to preserve some alleged rare species of bird (probably sparrows ,lol). So that left 1/3 acre to build on, so we had to raise the building on stilts to put parking underneath. We get to the final entitlement meeting to get our last approval for building permit when a guy from the gas company comes in last minute and says there's a gas main going across the front of the property which they originally missed where our new proposed entrance way was to be moved. Find out to move the gas line would cost 400K! Instead we made a deal with the neighbor for a right of way to use their entrance and then enter into our side yard. Did this in exchange for refacing their building and redid their landscaping which cost about 75K. Better deal for all as it was an eyesore and likely raised the value of our building.
I have a property in Rohnert Park CA 4 acre right across from the graton Casino I bought it in 95 for nothing.. we have to do a Salamander study.. its a 4 million dollar property be held up by a salamander and we paid 27k for it.. so I am anxious to get it moving so I can cash out. Frankly if its not one thing its another.. just have to have the ability to weather the storms. lest you get hit by a 15 foot sneaker wave
- Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes7y
In Chicago, if you do a substantial renovation, you have to replace the water line connecting to the street. It is expensive and is not one of the bells and whistles that wows a buyer.
- Investor · San Diego, CA · Member since 2016 · 265 posts · 305 votes7yBob Woelfel We ended up going with the soda blast and disinfectant on the floor joists with the mold. The leaking pipes were the culprit. Not cheap, as it was more than a band aid approach. I’ve heard of some flippers just doing the disinfectant or masking it and the problem never fully goes away.
- Rental Property Investor · Atlanta, GA · Member since 2018 · 15 posts · 24 votes7y
@Eric Schultz did you have the home inspected prior to purchasing it? I feel like that would have been discovered during inspection.
- Rental Property Investor · Pittsburgh, PA · Member since 2016 · 60 posts · 38 votes7y@Nick Murray demo is fun... for a day. A lot of people don’t realize how long demo actually takes if you’re taking on a larger project. And also how expensive it is to pay for a dumpster or garbage service to haul it away.
- Investor · San Diego, CA · Member since 2016 · 265 posts · 305 votes7y
@Shanese Francis It was purchased at auction. We made the repairs to keep it off the buyer’s home inspection report.
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