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Updated over 7 years ago on . Most recent reply
First Time Atlanta Flipper Needs Advice!!
Hey BP Community,
First time flipper and I need your help! I have a house under contract I'm planning to flip and I'm about to close on. I bought the house (about 1500 sq ft) for 80k in the 30032 zip code of Decatur with an ARV of 185k. There are some very high end custom renovations going on in this area along with the more cookie cutter ones that still sell for good prices. I had a few bids given to me by GC's and one of them while being much higher also produces much higher ARVs.
The first two bid out the property inbetween 55-65k. The third bid the house at $124.5k but with an ARV of $280-290k.
This is the one I’m interested in working with. However, I’m out of state and don’t want to be taken advantage of by the GC as far as price. I received his bid with sectional break downs and it feels like he’s taking a lot off the top for himself. I understand he’s doing a lot of custom work and he is essentially a designer as well in the sense that I don’t have to be hands on at all and just let him do his thing creatively. (I don’t need to provide finishes, exact brands and such) Essentially he’s an artist and has an amazing track record of doing these flips and selling for crazy prices.
I don’t want to begin the relationship with him knowing I am willing to pay prices like a retail home buyer. I also don’t want to be offensive when dealing with him because he has a strong history of great work and shattering records in different subdivisions. Below is a breakdown of the quotes he gave me. I know you can’t see the house I’m referring to but given the area I’m talking about but do any of these quotes seem outlandish? One that stuck out to me was the exterior paint being over $4800. How would you go about negotiating with a GC on this?
| Demo | Total | |||||
| Bath and kitchen | ||||||
| Walls and ceilings | ||||||
| Windows, doors and trim | ||||||
| Floors where damaged | ||||||
| Rent dumpsters | ||||||
| Total labor | 5580 | |||||
| Exterior Painting | ||||||
| Pressure wash house | ||||||
| Caulk where needed | ||||||
| Paint house | ||||||
| Total labor and estimated materials | 4850 | |||||
| Foundation | ||||||
| Reinforce existing footings | ||||||
| Replace floor joists where needed and install new subfloors | ||||||
| Install new floor joists in addition to level with existing house | ||||||
| Total labor and estimated materials | 8875 | |||||
| Plumbing | ||||||
| Replace pipes throughout | ||||||
| Run new pipes to accommodate new layout | ||||||
| Replace main water line | ||||||
| Total labor and materials | 7500 | |||||
| Insulation | ||||||
| Install insulation in attic | ||||||
| Install insulation on walls | ||||||
| Total labor and materials | 4580 | |||||
| Electrical | ||||||
| Update electrical throughout | ||||||
| Total labor and materials | 7850 | |||||
| HVAC | ||||||
| Install a new HVAC system | ||||||
| Install new duct work | ||||||
| Total labor and materials | 5890 | |||||
| Interior work | Total | |||||
| Open up living room to dining room | ||||||
| Create 3 bedrooms and 3 baths | ||||||
| Install sheetrock on walls and ceilings | ||||||
| Mud, sand and prime walls and ceilings | ||||||
| Total labor and estimated materials | 12785 | |||||
| Trim work | ||||||
| Install baseboards throughout | ||||||
| Install trim around windows and doors casing | ||||||
| Install new interior doors | ||||||
| Total labor and estimated materials | 4850 | |||||
| Interior Painting | ||||||
| Paint ceilings | ||||||
| Paint walls | ||||||
| Paint trim | ||||||
| Total labor and estimated materials | 3580 | |||||
| Wood Floors | ||||||
| Repair wood floors | ||||||
| Install new floors in addition | ||||||
| Sand and stain floors throughout | ||||||
| Total labor and materials | 6750 | |||||
| Master Bath | ||||||
| Build a concrete pam in shower | ||||||
| Install hardy boards on walls and floor | ||||||
| Install tile on floor and walls throughout | ||||||
| Install sink cabinets, toilet, and faucets | ||||||
| Install light fixtures and accessories, install glass shower door | ||||||
| Total labor and estimated materials | 7500 | |||||
| Guest bath | ||||||
| Install tub | ||||||
| Install hardy boards on walls and floor | ||||||
| Install tile on floor and walls | ||||||
| Install faucets, sink, and toilet | ||||||
| Install light fixtures and accessories | ||||||
| Total labor and estimated materials | 5750 | |||||
| Guest bath | Total | |||||
| Install tub | ||||||
| Install hardy boards on walls and floor | ||||||
| Install tile on floor and walls throughout | ||||||
| Install faucets, sink, and toilet | ||||||
| Install light fixtures and accessories | ||||||
| Total labor and estimated materials | 5750 | |||||
| Kitchen | ||||||
| Install hardy boards on floor | ||||||
| Install tile on floor | ||||||
| Install cabinets | ||||||
| Install sink and faucet | ||||||
| Install door knobs | ||||||
| Install granite and backsplash | ||||||
| Total labor and estimated materials | 7500 | |||||
| Roof | ||||||
| Remove old shingles and repair plywood | ||||||
| Install new shingles (25 year warranty). Install gutters | ||||||
| Total labor and materials | 6785 | |||||
| Yard | ||||||
| Fix front and backyard | ||||||
| Total labor and materials | 3500 | |||||
| Deck | ||||||
| Build a platform deck | ||||||
| Build a "kitchen area" with grill | ||||||
| Total labor and materials | 4850 | |||||
| Fence | ||||||
| Install a wooded fence around property | ||||||
| Total labor and materials | 4880 | |||||
| Install new light fixtures throughout | 1850 | |||||
| Appliances | ||||||
| Refrigerator, microwave, stove and dishwasher | 3000 | |||||
| Total Budget | 124455 |
Most Popular Reply
#4 Contractors Contributor
- Contractor
- Atlanta, GA
Nobody working in 30032 has a huge track record of anything.