Trials and tribulations of my first flip!

[Tim G.]

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

[J Scott]

Originally posted by @Liam Goble:

Decided to go find the contractor...

he had gutted the entire bathroom down to the studs! Certainly not in the plan at all.

....

He's got this week to turn it around and start shining, or I'm going to line up an 2nd team to come in and execute the plan.

I don't know all the details obviously, but if a contractor were to gut a room that we hadn't discussed gutting, I'd be thinking one of two things:

1. He's an idiot and would eventually do something that would cost me a lot more money than I had anticipated (think lawsuit); or

2. He's a scam artist looking to make more on the project than we had agreed by over-improving and over-charging.

Either way, I would have had him off my project in about 10 seconds.

Did you have a written contract? What did the contract say about the bathroom? What was his rationale for gutting it?