Do you fix n' flip with granite and hardwood or laminate and linoleum?

Question

Hey ladies and gents, lately I have seen a few different strategies in the fix and flip industry. Ive seen alot more people turning to the 'high end' flip vs the traditional.

So, what's your strategy? And why do you think it trumps other business models

J Scott · Answer

Hey Rob,

I use the 12' rolls of vinyl (comes packaged like carpet).  I pay about $4.50/sy for material and $4.00/sy for installation.  I buy material direct from the manufacturer, so its probably 50% chapter than retail, but even at retail, it's a lot less expensive than tile for me.

Here's an example:

http://123flip.com/wp-content/uploads/Trifecta_House/Staging/3.jpg

Tom A. · Answer

While it depends on the location and price level, my general philosophy is to make my flip a little nicer than the competition at the same price level.  When a buyer walks in my flip after walking through 8 other houses I want them to notice the added sizzle features like granite countertops, that it's cleaner than other houses (i.e. windows washed inside and out) and it's tastefully staged.  The objective is to make an emotional connection with the potential buyer that generates a strong offer.

Speaking of granite in particular, the price has come down so much that it's an affordable rehabbing choice in sub-$100K houses in my market.  It still catches buyers' attention in the house or in the MLS listing verbiage.  On the other hand, in this market it makes financial sense to refinish HW floors if they're already there, but not to install them in an entry level house.

J Scott · Answer

I put vinyl flooring in all my kitchens and baths (except for higher end houses).  It's about $1 per square foot installed, compared to about $3 per square foot for tile.  My buyers certainly don't mind, as they just want "NEW".

Mark Updegraff · Answer

location, location, location. 
 
I find the deepest discounted property I can find via foreclosure, short sale, MLS etc and go a little bit above what the other houses are doing.  We're good at keeping costs low and making things look polished.  The little details add enough of a pop that sets us apart from the competition, no matter what we select for materials.  Cheaper materials can still look great, but you really need to be selective about what you use, and where you use it.  If your budget has a few extra dollars spend them on the kitchen, bath, and light fixtures.

Cheers,
Mark

Jesse Tsai · Answer

Going high end or not depends on a few factors.

First depends on who the buyer will be.  If its a starter home, they probably will be happy just getting a clean property.  On the other end of the spectrum, if its going to a buyer moving up, they may want the granite countertops, nicer fixtures, and stone flooring.

I also look which houses Im going to be competing against.  If all the other homes in the area are highly appointed, then you can bet that mine will be too.  However, if there isnt much competition on the market, or they're all low end,  then I can choose to go low end as well, or go a little higher end, and shoot for a higher price

Account Closed · Answer

In my market many of the 100K houses now have granite right along side the lower cost flooring (vinyl sheet or tile).  The cost of the Chinese granite has changed everything.  If you aren't picky about color, you can get it installed in my area for less than $600 a side/piece (labor and materials). I did a rehab in Jan and the large U kitchen was $1800 and the bath vanities were $250/ea.  Repainted the cupboards and vanities. The granite sold the house.  Lots of people are putting into rentals.  If you live near a major port, that granite is everywhere.

James Bell · Answer

Two years ago I would have to have put granite and hardwood in a low end house just to sell it.  Today, as our market has improved, I will easily sell the same house with carpet and laminate counters tops.  Supply and demand.....

Jean Norton · Answer

I rehab houses throughout the country and I can say it is first a local question, then a specifically neighborhood question.

When I rehabbed properties in Bakersfield, I didn't need to use granite, etc. because my end buyer was presented with an opportunity to they never thought possible, to achieve the dream of owning their own home.

Now in Chicago, in order to make the sale, it's granite and hardwood because just a "normal" looking house will sit on the market way too long.

And then, look at the level of the house.  What do the neighbors have?  A higher dollar house requires high end finishes.

Andrew O. · Answer

I just had granite done in the kitchen of a house, it turned out to be the same price as laminate, to me that's kind of a no brainer. $780, removed the old, new plywood, granite, cut the sink hole, bullnose and backsplash and reinstalled the sink. 16 linear feet.

Did a nice job too.

Andrew

Edit: I was able to use precut slabs, with minimal fabricating, hence the price.

Will Barnard · Answer

High end gets better than granite in my area, low end gets granite, nothing less than that. Flooring - have yet and likely never will use laminate, low end gets tile, and as the price goes up. So does the material all the way up to very nice stone and or hardwood floors.

As others stated, the area makes a judge difference in your selection of materials. Go with at or slightly above what all the competition has and you will command top dollar. Go with less and you will likely get less than top dollar and hold longer.

Do you fix n' flip with granite and hardwood or laminate and linoleum?

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