What was it like buying and rehabbing a gutted property?

[Jonathan Feliciano]

Hi BP community,

I'm curious to hear from those who bought and rehabbed a gutted property. What was your experience like? And would you do it again?

[Andy Sabisch]

If you are planning on doing anything more than a cosmetic flip, buying a property that has already been gutted to the studs saves you time and money.  We have done that where we can as it makes it easy to make structural changes, run the electrical and plumbing where needed and then get a drywall crew to close things up.  The previous owner paid to tear out the old walls, dealt with the mess and had a dumpster remove it so again, if you are doing more than paint and flooring, a property that has been gutted makes your job easier (and saves you money).  It is also easier to see issues with the walls removed.

[Bruce Woodruff]

This used to be my bread-and-butter. It is not for the faint of heart, that's for sure....

But the best way to make $$.....

[Julie Muse]

The main thing I would say is whatever you have noted for your budget add 20%.  They always run over and if you are new to flipping I would not recommend it.  Also, the construction time may take longer than you would expect. Personally, I would go after base hits 

[Bob Stevens]

Quote from @Jonathan Feliciano:

Hi BP community,

I'm curious to hear from those who bought and rehabbed a gutted property. What was your experience like? And would you do it again?

 Not really sure how to respond. Great experience, and of course do it again. The best deals are those that need the most amount of work. 

[Bruce Woodruff]

Quote from @Julie Muse:

The main thing I would say is whatever you have noted for your budget add 20%.  They always run over and if you are new to flipping I would not recommend it.  Also, the construction time may take longer than you would expect. Personally, I would go after base hits 

Lol, the voice of experience right here!

[Bruce Woodruff]

Quote from @Bob Stevens:

The best deals are those that need the most amount of work. 

Ain't that the truth? !?!

[Kevin Ivey]

I like it vs doing an older building where you're spot fixing problems and are hoping nothing to signicant is hiding in walls.  if you have to demo it all, way easier to have it done vs spending time or money and less surprises.

very different project then 20 yr old cosmetic flips and may require a lot more permitting and upgrades since it's all open the building dept may want you to meet current code as much as possible.

[Alan F.]

Quote from @Jonathan Feliciano:

Hi BP community,

I'm curious to hear from those who bought and rehabbed a gutted property. What was your experience like? And would you do it again?

 Gutted houses are great because its alot like new construction, except for stud planing! 🤣

[Abdulah Abunasrah]

Always been a headache to me. Make sure you put a pen to estimated rehab then add 10%. I like nicer houses that just need paint and flooring or maybe a roof. Less profit but less headache

[JD Martin]

Quote from @Jonathan Feliciano:

Hi BP community,

I'm curious to hear from those who bought and rehabbed a gutted property. What was your experience like? And would you do it again?

 Pretty much every property I bought fit that definition. What was the experience like? Hard work, dirty, long hours, expensive. And sometimes dangerous, as I landed in the emergency room twice from rehabs, once from drilling straight through my finger. 

Would I do it again? Well I did it 15 times so I guess I would but I'm getting older and more tired these days, and property is more expensive, so I'm less inclined these days. Nevertheless, I made a lot of money on the properties so it was worth it. Most of your money is in the stuff other people don't want to do. I fell through a rotted floor once. I bought a house so full of cat piss that you needed a respirator to go inside. One of my properties the city condemned it and had the lady removed before I bought it, and it was so full of roaches they had to tent the entire house and cut away the bottom third of drywall from rot and mold. 

On the plus side, aside from the money, when you have to gut you often get to fix crappy layouts. I think we've made more money realigning homes in ways that make sense than by just putting new kitchens and bathrooms. Adding bathrooms, laundry rooms & closets, removing space wasting hallways, etc. All of that is possible when you go down to the studs.