Where do you save the CASH

Question

Where do you save money during your rehabs?

I'm looking to close on a house before Dec. and put about 30 days into the house! I don't have anything in mind yet, but I've looked at a few.

So whats your strategy to best cut cost? Salvaging cabinets? New handle pulls? Resurface tubs?

What makes the most impact!

I think we could all learn from this one  :mrgreen:

Brian Levredge · Answer

Know your market and your limitations.  By that I mean don't go and do what is not necessary.  I rehab and flip in a couple different market segments.  In my lower segment, I don't need to put tile and granite in the kitchens because my buyers aren't concerned with those types of finishes.  In the upper market segment, it's a different story because buyers there have different tastes and like those types of finishes.

J Scott · Answer

In my opinion, it's impossible to make decisions on what does and doesn't need to be done on someone else's rehab.  Perhaps you can salvage cabinets, perhaps not.  It depends on a thousand factors, and only you have the information to make those kinds of savings decisions...

Personally, I agree with Marc on this one...
                    
                    I save money by getting the projects done quickly and then getting the property sold quickly.  I save on holding costs, the cost of wasting my personal time and the opportunity cost of not being able to focus on other projects...
                    
                    As for saving money during the rehab, we generally do major rehab projects (replace everything), so the savings comes by all the work we did upfront to find reliable and reasonably priced contractors and materials.
                    
                    In fact, we do the same types of rehabs we were doing 2 years ago, but can now do them for about 60% of what it cost back then and in about 40% of the time.
          
          In other words, the saving will come from experience with both contractors and materials...

Marc Freislinger · Answer

Sub your own work out, and find quality people and a good price. Not an easy task, but if you're there to make sure the work is what you want it to be, it can save a fortune. Learning Spanish is helpful for this task.

Look for sales. We've gotten a lot of great supplies on sale at HD, Menards, or Lowes. Often if you purchase a lot from any one store, they can give you good discounts.

From experience though, the best way to save money is to make it perfect and get it out the door as quickly as possible. Don't cut corners if it's going to affect the appearance.

Account Closed · Answer

First thing, be really careful about cheap bids for work. If you don't know the workman, do  little research on him.

Cheap might be good, but sub-standard is not. Neither is slow. A slow subcontractor throws everything else off schedule.

The quality fast workers are worth the money they charge.

I don't replace cabinets unless they need to be moved or they reek of mouse pee. Cabinets can be repaired and a quality job of spray paint, inside and out, put on by a qualified painter makes them look like brand new cabinets.

Maybe, if the house calls for it, I might replace top cabinet doors with glass fronts.

The yard: big savings if you start to put water on the yard as soon as you buy the house. Often the grass will come back with water and mowing and maybe a little top seeding. You are going to be there working on the house, so it just takes a few minutes to move sprinklers around.

If there is no lawn, then seed. It's cheaper than sod and you get a much better lawn.

If you roll out sod after the house is finished, it costs $ and someone must go by and water it a couple of times a day until it is well established, or it will die.

If you use tile, take the time to shop. I end up buying tile all over the place. No shop consistently and reliably has good deals on tile.

Sometimes you can buy inexpensive light fixtures and change them into beauties by changing the glass shades.

If you remove cabinets, and they aren't horrible, unscrew them from the wall. They can be moved to garages or laundry rooms.

It absolutely drives me nuts to watch those home shows where they remove cabinets with a sledge hammer.

Don Hines · Answer

What Brian said. 
Do not "over-do" for the neighborhood. Is the project in a granite counter top neighborhood? Or will formica do.
Stainless appliances? Or plain ole white? ETC, ETC.
Don't forget to use the bid room at Lowe's or Home Depot. 
Hire out all you can afford. You will get sick of working on it after hours and every weekend.
Don

Mark Updegraff · Answer

Number 1 for reducing cost I would guess is reduce holding.  At least it is in Buy / Hold.  Make sure you understand the cyclical market as well.  When will you be ready to market?  How will that look for Days on Market?

Cheers,
Mark

Raymond B. · Answer

Please note: 
Any prices that I quote, are probably high, as I live in Ct.

I'm involved in a complete rehab.
Removed everything, right down to the studs.

Needed about 110 sheets of sheet rock installed, including a cathedral ceiling.

One quote: $1200.
Another quote $1300.
Advertised on Craigslist,
received a quote for $900., from a licensed, insured sheet rock installer.

This was for the install only, did not include the taping, etc.

Ray in Ct.

Where do you save the CASH

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