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Updated over 10 years ago, 04/30/2014
Trials and tribulations of my first flip!
Welcome to my thread! I'm going to use this thread as my blog on my 1st rehab property. I ultimately want to get into rental properties and plan to use the profits (hopefully) from this flip to purchase the first rental property.
I close on the house on 2/28/14. My goal is to do the rehab in ~90 days and hopefully sold within another 90 days. To say my stress/nervousness level is rising as we get closer to the closing date is an understatement!
The house is a 3bd,1br ranch with unfinished basement, 1 car garage and 1 carport built in 1970. Based on the comps in the area, the ARV is ~$125,000. I am purchasing the property for $62,750 and have a rehab budget of $20,000. So I complied the 70% rule without even knowing about it! Haha
It seems like a relatively easy flip but there's still quite a bit of work needed....
- new roof, gutters & soffit
- minor mold remediation in basement
- kitchen is a gut
- bathroom is a gut
- bedrooms and living room need paint and floors refinished
There is more but those are the major items. Here's some pictures of the house from the MLS ad.
http://img.photobucket.com/albums/v295/SloRice/7e312f3949868ef43da66f9756bee7cf_zps8bef958e.jpg
http://img.photobucket.com/albums/v295/SloRice/9e20cfc7045fe66c8892fecd5cf7eab3_zps6fd1703f.jpg
http://img.photobucket.com/albums/v295/SloRice/40a6564a897878af879218c5b9182883_zps57272756.jpg
http://img.photobucket.com/albums/v295/SloRice/c20e68e18cfb7e7680f068570d8f9a2e_zpsfac61742.jpg
http://img.photobucket.com/albums/v295/SloRice/89fb473ab32604ebc7f34eeda9dfe0ab_zps0b485c24.jpg
@Andy Luick I appreciate the info on the mold and Microban. I'm not taking it lightly as I know it's serious stuff. I'm pretty anal about everything I do, so it will get taken care of correctly.
Unfortunately there just isn't enough room in the house to make a 2nd bathroom. A big plus is its in a GREAT school district though and this is an entry level price for the neighborhood/school district.
@scott k. The roof and soffit is still out for discussion. I haven't made a decision on how to proceed yet. The last contractor I spoke to wanted to do a tear off and gave me a number of $600 more to do so. But he hasn't seen the house yet to provide a bid. He also said it would be more cost effective to just repair the sections of soffit/fascia that are rotted instead of replacing.
The layover vs tear off bid difference I got from the 1st contractor was like $2k more.
your budget seems very low to me. But I have to assume you are doing the install yourself and this is just a material budget.
ex. $800 to paint a 3/1 ? That must just cover paint and supply cost right ?
Your roof seems spot on. I figure $250 sq for a tear off. Not tearing that roof will bite you at inspection. I'd requote it. Aluminum work seems in-line but again id requote all that . Actually I wouldn't be using your GC buddy for anything . I don't know any roofers besides hacks who roof over existing I also would most definitely put on architectural shingles cost difference is minimal
Budget for bathroom $1500 really? Just materials I assume
correct. Most of this budget is materials only. I will be doing most of the work.
My GC buddy gave me a tear off price as well.
I have a worst case and best case scenario budget. The budget 1 posted is closer to the best case scenario and what I'm targeting. But I do have room in the budget to go higher if necessary.
@Tim G. OK, Im glad to hear its a material budget.
My advice - Don't do business with friends when it comes to contracting. You will not be priority and you will not get that good of a deal.
When something comes up that they messed up and there is bad blood do you want to lose a friendship over a $4000 roof? Hard to cross the line between professional and friendship relationship.
By the way how far from Toledo are you?
I know exactly what you mean about working with friends going bad. I have meeting setup tomorrow morning with another contractor.
I'm in the Cincinnati area. About 3 hours south of Toledo. Although I did go to college at the Univ. of Toledo!
@Tim G. ..
Please consider getting 3 estimates for roof work. That seems high..Depending on the rate/square in your area, I believe you can save some money there. Also it will allow you to negotiate with your friend..Don't leave any $$ on the table...
Good luck! You will get pricing in line as you progress..
His roof price is about spot on without a tear off for someone licensed and insured
I just would put a roof on without a tear off
Hi Tim
Great post.
I have also used Cabinetgiant for cabinets on several rehab's and have always been happy with their quality, price, service, etc. Put "savnmony" in the discount code box for additional $ off. It's a second option for you !
Well I haven't updated in a couple weeks....been too busy doing work! HA!
Closed on the house last Wednesday 2/26. Had a crew over on Thursday gutting the basement and getting everything cleaned up. We spent the weekend painting the walls and floors as well as fixing some of the minor electrical and plumbing issues in the basement. I need to put another coat on the floor and install the sump pump stuff and the basement is pretty much done!
BEFORE
AFTER
A couple other notes.....
I spoke to probably 6-8 contractors on the roof over the last few weeks. I got bids for a tear off from $9500-$16000. Ended up working 1 down to $8950 for a tear off roof, gutters and soffits. That also includes the installation of a 60" sliding patio door that I purchased.
I also ended up buying kitchen cabinets through www.rtacabinetstore.com. Price was $1841 shipped. I went with the Bordeaux Shaker. I got a sample door last week and the color is amazing! Based on the specs, the cabinets seem to have very good construction. Hopefully I can confirm this when they arrive.
I have used RTA cabinets twice in rehabs (although from another distributor).
@Dawn Anastasi - who did you go through and what were your thoughts on them?
I went through Custom Service Hardware (company local to Wisconsin) and I think they turned out great. Here's a picture after they were installed:
@Dawn Anastasi and @Tim G. I know this is a little off topic, but I'm doing a kitchen this spring. For the cabinets I will be using cabinets to go but I'm struggling with the counter tops. I was wondering where did you get your counter tops?
I've done counter tops a couple of different ways. For the property that had granite counter tops, I went with a local supplier. They come out and template once you have your cabinets installed and the counter tops are custom made. I paid approximately $2,000 for the counter tops in the above picture (which you can't see all the cabinets in).
Otherwise, I just get granite-looking counter tops which are laminate from the local Menard's and have someone install them. Laminate is WAY cheaper than granite and if they are new, they look really good in a mid-range rental.
@Carlton B. I found a local granite installer that I can get a few different granites styles for $30/ft^2
Originally posted by @Carlton B.:
If you want a granite contractor recommendation for Milwaukee, shoot me a PM...
@John Weidner I should have about $1200 in the basement once its all done.
That checkerboard flooring in the basement was a floor tile that probably contained asbestos ...
You - and me and all of us - have to be careful doing what you don't completely know.
So time for another update! I've owned the house for 2 months now and have put A LOT of hours in during this time. The number 1 thing I've learned from this experience is I need to figure out how to contract work out while still being profitable. Between my day job and working here, i'm mentally, physically and economically worn out! For example, a friend and I put in 12 hours on Sunday raking leaves, cutting down trees that had grown into the fence, removing vines, etc. I'm in pretty good shape but I was beat by the end of the day! Anyways, I've come too far to quit now.....have a solid month of work left before its ready to sell.
My goal has been to sell for $125k. The house next door went up for sale for $139,900 a couple weeks ago and a house down the street went up for sale for $144,000 a few days ago. Both are similar sized to mine but not very updated. IMO both are overpriced but we'll see....
Here are the updated numbers. I was really trying not to put windows in but the more I messed with them, the more hopeless they became. So without the windows, my rehab estimate would have been 6.3% low....not too bad I don't think for my first rehab! The numbers in blue are estimated amounts based on what's left, so this can all change. But i'm pretty confident in them now.
Here are a couple pictures of the kitchen and bathroom. Both are very near completion. The granite countertops were installed today. I will get pictures when I get back in town.
The cabinets are from rtacabinetstore.com Construction is OK....nothing exciting. 1/2" plywood boxes but its very low grade plywood. Is this consistent with all chinese made RTA cabinets? The finish is nice but very thin. I also broke 2 of the cam locks on 1 of the cabinets and I'm having a hell of a time getting new ones from rtacabinetstore.com. I may end up just buying some small "L" brackets and doing it myself. :-\
