All Forum Posts by: Jessica S.

Hi Kyle,

1)  the first thing you want to ask prospective contractors is if they've had experience working on flips before.  Since you're new to flipping, ideally you want a contractor who is familiar with the process. 

Contractors have various methods for determining how much they will charge you.  You can ask them how they're going to bill the job but they won't be able to give you any pricing until they see the house.

2)  when I first started flipping I didn't know much about the design aspect.  I educated myself by doing a ton of research online, and also by going to see a ton of flips in my area.  Now I feel really comfortable with the design, and think it's fun.  If you don't want to go this route then hire a designer.   Here in Portland, buyers will pay a premium for good design. I'm guessing the Bay Area is similar.   Others may disagree, but I say don't skimp on design if you want maximum value.

 Doesn't count

I hire a window washer to clean the windows.  It makes a huge difference, particularly in photos.  Buyers won't notice the windows, but will get a sense that the house is fresh and clean.  I also run an ionizer to get rid of any lingering chemical odors.  That "New house" smell might go over well in some markets, but not here in ultra-eco Portland.

 I'd say a little of both.

@Todd Whiddon , I've been trying to figure out what to do with a 2/1 that we're flipping. We were originally planning to turn it into a 3/2 with a basement conversion but that would have left us with a pretty slim profit margin. Today we decided to go for a 2nd story addition. The numbers totally make sense and I'm excited to take on something I've never done before. The GC is happy too because he hates working in the basement - although he may eat his words when he's out in the rain this winter : )

I read through your entire thread last week, and thought, "I want to do one of these."  Thanks for the inspiration!  (I hope I'm not cursing your name halfway through...)

The Vancouver property is a HUD home. They don't always have the most accurate listings. (I found an extra bathroom in a Portland HUD home once, it was a nice surprise.). There may already be a finished basement based on the tax record, but it also might not be permitted.

I wouldn't be interested in this one because it's a corner lot on a very busy street.  Did you check it out on Google Maps?  Some people don't care but "no busy streets" is one of my rules.

I love looking at properties, it's an addicting pastime!

Kyle, the plaster in older homes sometimes contains asbestos.  If your home was built before 1978 you might want to consider getting it tested, particularly since you're living there during the remodel.

 Oregon law states:

"A CCB license is required for those who purchase homes with the intent to fix them up and resell them, even if they do not perform the work themselves. "

Here are the numbers for the last flip we did in PDX

Purchase price:  $167k

Rehab:  $75k (should've  prob been less, we tend to go overboard)

Sale Price:  330k

Net Profit: $67k

 I found the property on RMLS.  It was listed for $189k.   I put in a full price cash offer on the first day it went on the market then got the price down during inspections.  

I don't think this type of deal is possible unless you have the resources to make a cash offer. We had private money so our holding costs were very low.  

 The fun thing about flipping in Portland is that people will pay a premium for good design.  There are some creative rehabbers  who really go out on a limb, design-wise.  

@Jeff Weissman , Thanks for the recommendation.  I'm having him do a bid this week.