Investor · Maxwell, TX · Member since 2016 · 34 posts · 69 votes
The last time I made a post I had just closed on my first house. I bought it to flip. The rehab took about 5 months. Once it was listed, it was under contract in 2 days with an over-asking price offer.
Rehab Scope:
- Exterior siding
- Extensive plumbing work
- Electrical upgrades (power panel)
- Stripped master bath down to studs
- Stripped kitchen down to studs
- Flooring throughout
- Texture/Paint
- Baseboard/casing
- All new electrical fixtures
- Plumbing fixtures
- Landscaping package
Lessons Learned:
- Do what you do best, and delegate the rest.
- You will make more money with a cell phone than you will with a hammer
- If you spend all of your time managing the project, you will finish the project and not have another project to work on.
- Flipping houses is a "job", not passive income, hire a GC, focus on deal flow.
Investor · Maxwell, TX · Member since 2016 · 34 posts · 69 votes
9y
Paul Bowers They call it LVT or luxury vinyl tile/plank, I ended up purchasing it from Home Depot and hired a subcontractor to do the install. It gave the house a slightly modern feel with the gray and was fairly fast to install.
http://m.homedepot.com/p/Home-Decorators-Collection-6-in-x-48-in-Antique-Brushed-Oak-Resilient-Luxury-Vinyl-Plank-19-39-sq-ft-case-60019/206268083?MERCH=REC-_-mobileweb_navplp_rr-4-_-NA-_-206268083-_-N
@Dylan Keyer I spent about $38K in labor. I GC'd the project. I started out doing some of the work myself and quickly realized that doing so would add a tremendous amount of time to the project. 2 weeks into the project, I shifted to hiring subs, making material selections, getting materials on site, and keeping an eye on the budget. Towards the end of the project, I ended up doing some of the punch-out work myself because I wasn't able to find anyone who would do it how I wanted done. On the next rehab, I vowed to myself that I wouldn't put on my tool bag, and I would even consider hiring a GC to handle everything turn-key.
Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
9y
Do you plan to use any financing in the future so you can do more than 1 at a time? Taking 5 months per flip at that rate gives you a little over $72k of hard earned money per year (not counting anything Uncle Sam may take). I expect your goal is to make more than that.
Investor · Maxwell, TX · Member since 2016 · 34 posts · 69 votes
9y
@Eric James I am definitely considering using financing in the future. You are right about that, I would like be visiting the title company multiple times per month!!!
Lebanon County, PA · Member since 2015 · 49 posts · 6 votes
9y
This looks great, nice work! I love the finishes you chose and the staging is perfect. Curious, how did you pay for the rehab costs? PML or HML? If so, what was the interest rate?
Investor · Maxwell, TX · Member since 2016 · 34 posts · 69 votes
9y
@Kyle Wenger Thanks! I wanted to go with something fairly neutral to appeal to the majority of buyers, and not paint a wall an overly dramatic color (blue,green,yellow,pink). I had some cash available for the project, if I didn't have that available I would have talked to a few close friends/relatives (PML).
Lebanon County, PA · Member since 2015 · 49 posts · 6 votes
9y
So what's next for you? What is your long term strategy? I always enjoy connecting with other investors similar in age to get their perspectives, hear their goals, and learn how they are structuring deals, financing them etc. I look forward to connecting with you soon and hearing about your next project.