House flipping time needed?

Question

I'm starting to research rehabbing more and I'd like to understand the process a bit more in depth. I feel I have a decent understanding of how to run the numbers (you get better with it through experience) and I understand how important it is to have a plan and to find qualified and trustworthy GCs. What I don't understand with flipping is exactly how much time is involved with the flip. One has to find a deal, and have the team and money in place and then take off. How busy is the schedule for the flipper at that point? Is this something someone can do with a full-time 9-5 job or is that pretty out of the question?

If any one experienced in this field could give a day-in-the-life or even a glimpse at a week it would be appreciated!

Bryan L. · Answer

Here's something about rehabbing: it's similar to regular construction or home building in a lot of ways, but can also be very very different. You will have to analyze and asses a situation and make a decision. For example, do I sand and paint these old cabinets, or tear them out and install new ones? This floor has a 1/4" step in it as we go from the living room to the dining room - how do we work with that with our laminate flooring? Do we try to feather in the difference, or do we put down a transition strip? The wall-paper isn't coming off the wall very well at all. Do we continue, or do we tear it all out to the studs, or do we go over it with 1/4 inch sheet-rock, or do we skim-coat it? That built in stove is functional, but very out-dated. Do we leave it or replace it? Built-in stoves are more expensive than regular stoves, so do we re-work the cabinets to set a regular stove/oven? That worker thinks this paint job looks good? Do I fire her now, or point out what needs to be fixed and give her one more chance? That old covered back patio area - the wood is pretty rotten. Do we replace it, or just tear it all down and have an open-air patio? Toilet and tub will not drain, what's wrong with the plumbing? That bath vanity is solid, but ugly. Do I paint it or replace it? There's a water stain on the ceiling. Is there an active current leak, or was it just not repainted when the previous owners re-roofed the house? That old paneling is really ugly. Do we pull it or paint it? There's 25 years of nicotine all over the walls and ceiling. What's the best way to remove that?

All of these questions (and more) come from just one house that I am rehabbing right now.

Anthony Dadlani · Answer

Steven,

I think alot more time is involved especially at the beginning as you will have a learning curve. Then again, cant learn to swim sitting on the beach.

Most Project Managers we work with start their day early at their home office doing paperwork, paying the utility bills, coordinating the contractors to the different sites, making offers/reviewing new deals, and working the phones to sell existing inventory. Usually midday they will travel to the sites to make sure the remodels are going well and put out any fires or make suggestions on the scope of work.

It is certainly a full time job if you are managing 8-10 remodels, homes at a time. However with 1 home/project it can certainly be done with a few hours of time a day if organized.

Best of luck in all your endeavors.

Bryan L. · Answer

I did my first few rehab/flips while having a full time job.  I would go by the work-site on my lunch break and after work.  Then go to Lowes to pick up the stuff that the guys needed.  And deliver it in the morning on the way into work.  It's possible.  But I also had some background in doing repairs and such and a great deal of back-ground in project management.  A GC will help you out a lot, but will cost you more money compared to being your own contractor.  Now that I have much more experience under my belt and have found some good workers, I don't go by the job-site everyday.  But you need to have people that you can trust, and you need to lay out a plan for them.  Give them a check-list.  And give them some way that they can buy materials if they can't carry the materials themselves.  Put them on your Lowes account if you trust them enough.  Of course, you will be paying for their time while they are in Lowes as well.

House flipping time needed?

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