First full rehab under contract in Virginia beach.what now?

Question

Trying to get into real estate. Firt step is buying a house with plenty of equity. So now that i have one under contract i estimate 35k in rehab.Purchased for 200k and the after repair value will be 300k if done right. Any advice on how to get a quality kitchen in Virginia beach Virginia without trading an arm or a leg?the kitchen has to be fully gutted and replaced The roof, Windows, floors, yard, pool, and more all need to be replaced or repaired so as you can see its a very tight budget.

I plan on living in the house so I can do some work on my own. What do you recommend I do on my own. I'm very handy and I'm am electrician for the navy so I know my way around wires.

Kris Haskins · Answer

OH man, I think this job sounds A LOT tight.  I just spent $50k on a 1000sf rehab.  Things are going up quickly.  You're looking at $10k on the kitchen if you want it right.  DOn't forget appliances are (stainless) are going to be $2k off the top.  send us some pics so we can take a look at your job.  Since you're living in it, I'd piece it together with kit and baths 1st, then more stuff over the years.  This is going to be  time for you but a good time..  plus the neighbors will love you...

David Cowan · Answer

@Yerry Balenzuela Welcome! Congrats! Everyone has said pretty much everything. Except for one thing. Depending on how you are financing this project, you might be able to consider lease optioning the house when it's done which would get your loan paid down further before actually selling the house. Lease options might be a way to get some of your money back before making a final sale. That could help widen the margins a bit for you. Especially if you take the advice of all these obviously very knowledgeable members of our community, here. I just learned a lot by coming here and reading your post.

Jeff Bridges · Answer

I'd get to know your habitat re-store and check in regularly in order to keep your materials budget low. They get donated unused new construction materials from projects and sell at the store to raise funds for their habitat for humanity Home construction projects.  You might find kitchen cabinets and other big ticket items that keep your budget down vs. buying retail. There appear to be 2 in virginia beach so you should have good selection. The other side of the coin is labor. Start interviewing and getting bids from pool and roof guys/firms along with your GC/ contractor/handyman that will be make or breaking your costs from the labor side. I know pool replacement or rehab is always big ticket. I'd get a quote early to make sure it doesn't clobber your budget, and consider if you need to back out of the contract if it creates more of a liability than a flip with projected positive profit. I've pulled out of contracts during my inspection period after my inspector found issues that would have doubled my original estimates and created a loss when I sold. All the other projects are easy to budget worst case replacement cost but pool is least standard project cost. Make sure you firm up your estimate with all of your costs with bids. paying some guys for inspections/ surveys up front could save you from big losses once you are at the point of no return. good luck and make sure to do a reality check before you sign on the dotted line.

http://shrhabitat.org/store-locations/

Prince Dhillon · Answer

Hello Yerry,

Yes the margins looks little tight. You have to keep your rehab budget as low as possible. But at the same time you have to do the quality work to sell your house to a retail buyer, so doing rehab work by yourself will be helpful. Also if you are using any lender that will bring the profit down too. You also need to consider the closing cost when buying the property and closing costs and agents commission while selling it. Good Luck.

Yerry Balenzuela · Answer

hey ,

@kris haskins, where do you normally get your kitchen from when you want low cost quality work.  You mentioned 10k but it that a effaced job or full redo? What jobs do you normally do yourself and what jobs do you leave for the contractor to save money but keep quality.

I will most definitely post pictures. At the very least my before pictures will be up by Tuesday. Thank you both for commenting

Yerry Balenzuela · Answer

Hey, where do you guys normally get your better kitchens from. I don't mind paying more but I want to make sure I don't pay too much. the margins are very tight so I need specifics. what do flippers normally do themselves and where do they normally get their kitchens from in this area?

First full rehab under contract in Virginia beach.what now?

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