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Cody Caswell
  • Interior Decorator
  • Austin, TX
44
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26
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How to Save Thousands on Cabinetry Cost

Cody Caswell
  • Interior Decorator
  • Austin, TX
Posted

The days of using Kitchen and Bath companies for the cabinets and countertops in your flips are over. There are just too many options available to go directly to the supplier!

Companies like DL Cabinetry and J&K Cabinetry ship RTA cabinets nationwide for a fraction of the cost of Kitchen and Bath companies. Plus, there are so many retail outlets where you can shop for countertops almost directly from the quarry. You just need the labor cost to install both of these - but even combined with the labor cost, it makes so much more sense to do it this way.

Kitchen and Bath companies are a wonderful resource for homeowners, and I'm sure some out there give super fair prices to investors! However, we've found that for the most part, shopping directly with these suppliers will save you so much money. They're pre-finished RTA, and it's usually only ~$100-150 per cabinet to install. VERY affordable!

Quartz is a little tricky, but for the most part, a slab of Calacatta will cost somewhere around $750-$1,250 depending on the grade and thickness. After the labor cost to install, it's so much cheaper to go this route rather than using the Kitchen + Bath company for materials and labor. At the end of the day, they're usually buying the products from the same outlets that you can!

Our goal for the projects we flip and the projects we design for other investors is to figure out how to get the same look at a fraction of the price. Curious to see what everyone else sees around the US. Is this accurate for your area as well?

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Dan H.
#4 General Real Estate Investing Contributor
  • Investor
  • Poway, CA
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Dan H.
#4 General Real Estate Investing Contributor
  • Investor
  • Poway, CA
Replied
Quote from @Alan F.:

In CA it is a violation of CSLB business and professions code 7159(d)(5) to execute residential time and materials contracts. I. E. Licensed contractors supply materials and subsequently warranties.

Also how would a flipper comply with assembly bill 968 if they supply materials?


 I know of nothing in ab968 that has to do with source of materials.  It is about disclosing the scope of the rehab.   I think it helps flippers as it is easy to find the purchase pricesp versus selling price.   Having to “disclose” the work in the flip basically is mandating doing something that helps the buyer recognize the scope of the change which justifies the mark up.  It is nice of the state to mandate that flippers do this.  I would do it even if I sell far outside the 18 month window.  It justifies the property selling for greater than just market appreciation

I do owner builder rehabs but sometimes use contractors for large work scope or scope beyond expertise.  The contractors who do work for me have zero issues with me sourcing the material if disclosed up front and not holding them accountable for any material issues.  Because of the relationship I have with the contractors I use, there is no material mark up when they source the material.

Basically there is not an issue.

  • Dan H.
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