All Forum Posts by: Marshall Secord

Thanks! Yes, I’m anticipating the contractor hunt to be very taxing.  

Thanks to the both of you for the replies. This is what I was looking for. I was earmarking about 100k in my head, but with all of the different resources out there explaining rehab costs in different cities and at different points in time, budgets for this kind of work can seem all over the place.  

Hi BP, I just finished and sold a rowhome flip in Philly and it was quite successful. I did all the work myself and it was by no means a full gut, but regardless I definitely got a great sense for material costs for home renovations in the area. I am however, starting to shift my focus to doing less work myself and bringing in more contractors. I just looked at a West Philly rowhome that isn't a full gut, but needs a lot. The property is two stories with a basement and close to 1300 sqft with a tiny backyard and a big front porch. I would love some feedback on ballpark pricing for the work that needs doing. I've listed the level of work in a nutshell below. Maybe understanding GC pricing vs. subs would be helpful too. I will be doing pretty nice finishes, but nothing to break the bank. For example, $4-5/sqft hardwood floors rather than laminate; Quartz countertops rather than formica; Nice looking in trend fixtures from wayfair rather than homedepot builder grade; etc. I don't plan on opening up walls and reconfiguring electrical, but hvac might be needed and reconfiguring of electrical might need to happen in the basement.

-All new hardwood floors upstairs and down

-Gut one bathroom and add a second

-New tile in bathrooms and kitchen + backsplash

-Exterior work including sanding and painting

-Walls hopefully don't need a gut, but they do have a weird texture and I'm hoping to do some skimcoating

-All new interior and exterior doors and hardware

-New kitchen ($3,000 worth of ikea cabinets)

-All new light fixtures and appliances

-Finished basement (this is the biggest ? for me) I'm guessing all sorts of wiring needs to be reconfigured to run through joists so drywall can go on the ceiling. Maybe basic tile flooring down here

-Some minor structural work to a few basement joists due to rot  causing a slope in the floor at the back of the house. Could need some new subfloor in areas too.

-obviously all the demo involved tearing out old tile, carpet and moving out all the crap in the basement

-possibly update hvac (currently has radiators)

-Painting and trimwork

-Windows are actually ok, don't need new ones

-building a fence for privacy in the back yard

Sorry if this is a lot, but I know some of ya'll would rather have more detail than not enough. Any help on ballpark info for this level rehab would be great! 

Thanks Jessica, I’m leaning towards the flip at the moment, but if anything changes I may reach out 

Staining does look like a nice option. Do you know if the application process is the same as painting? I don’t want to show up to the job with a bunch of stain when the painters thought they were getting paint. 

Hi BP, simple question here. I’m having my brick row home exterior painted (I know it’s a cardinal sin to paint brick) I’m trying to calculate how many gallons of paint I need. The facade should be roughly 300sqft. Anybody have good experience with this? I don’t want to end up with 5 gallons extra.

Hi BP. I’m currently working on what I always intended to be a flip in Philadelphia, but I’m starting to think more and more about the potential of a cash out refinance so that I can keep the house in the appreciating Brewerytown community. Does anybody know what the requirements are for how quickly I could actually get the cash from a refinance?  I’ve heard that I may need to rent the property out for a few months or even a year before I can refinance. Also, can I cash out the full final appraised value minus what has already been paid for the house, or is there a max percentage of the value I can pull out?  I would love for it to feel like I’m getting paid what I would for a flip and I get to keep the house in exchange for a bigger mortgage. Thanks!

Thanks Andrew! Looks like I might need to get a real tax professional on board next year and say goodbye to turbo tax… 

Thanks for the info. I guess my tax bracket now that I don’t have a w2 job will be determined by my yearly flipping profit?  It’s just hard to believe that I have a self employed tax on top of that. Seems like a de- incentive for small business owners in general. 

Hi BP, I quit my full time job and closed on a property a couple months ago in Philly. I’m doing most of the renovations myself and I’m starting to sift through the potential taxes incurred once I sell. I’m a bit confused with what I’m reading about capital gains and self employment taxes. I was thinking I would be taxed on my profit in a similar percentage as my old w2 job was taxed, but now I’m scared that Uncle Sam is going to nail me for nearly half of my profits. Can anybody shed some light on this?