Anyone flipping/rehabbing in the 500k to 3m dollar range?

[Scott Hollister]

Anyone flipping/rehabbing in the 500k to 3m dollar range?

Who is flipping/rehabbing single family or multi family homes in the 500k to 3 million-dollar range? 

Background: Rehabbing homes in CT for first time home buyers in the 180-215k range.

My questions:

• Who are your end buyers and how do they typically finance? (Jumbo loans and beyond, high net worth individuals?)
• How do you source your materials? (Assuming you can’t take local hardware trips for higher end materials) Are there any national chains that focus in higher end materials?
• Does your labor rate for skilled workers increase dramatically? (For instance, I was shocked when networking at a 3m beach front property in RI, the price to finish hardwood floors is still the same cost as my CT rehabs, $2 sq ft.) I assumed there would be a price hike associated with higher end homes.
• What type of capital are you going after? Private vs HM.

Thanks for the feedback as a I think out loud…

[Doug W.]

I am in Northern VA and flipping in a city and county that border DC. A starter home in the neighborhoods I am in starts at $350-$400 and that will get you between 900-1200 sqft of finished space. I'm in that range as well as the range selling between $500-$750 and soon to be doing one with an ARV of $1.2.

Like Russell mentioned earlier, I plan on spending about $50/sqft on countertops. I source tile from both Home Depot and Floor & Decor. I pay roughly $3/sqft to have hardwood floors refinished. The rest of my finish materials I source from places including Amazon, Build.com, and HD (toilets and tubs, mostly). Building materials come from local lumberyards which I find to be of much higher quality than the materials (and service) at HD or Lowes. I buy my cabinets (all wood boxes w/ dovetail drawers) from Next Day Cabinets although I have used Wolf cabinets previously via a GC who is a distributor for that line. 

I see some folks here flipping in the higher price range and installing crap finish materials and.... surprise surprise... their homes sit on the market when they try to sell. Often I see other poor quality work like bad drywall finishing and cheap paint used.