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First Flip - Second House

 
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Old 03-15-2018, 03:44 PM   #21
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Re: First Flip - Second House


It matters where the appliances come from. If they bought new to replace, the likelihood there is something systemically wrong with the old is high. Best is to buy from someone affluent who wants to be rid of the appliances in a reno. These deals last very short, they are priced to be out of the way fast.
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Old 03-15-2018, 03:52 PM   #22
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Re: First Flip - Second House


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Originally Posted by Frank Castle View Post
What's wrong with it?
If it was really perfect, they would be asking more $$.

Just my.02

I'm just using random numbers.
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Old 03-15-2018, 09:24 PM   #23
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Re: First Flip - Second House


Stick with total generic....no fancy stuff. Concentrate on kitchen, bathroom, and curb appeal this is what sells a house....the rest just clean up and generic...let the buyer customize the way they want. I've done a dozen at least, Depending on market margins are tighter than you think they are. Always inspect HVAC, roof, and sewer cam before buying
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Old 03-15-2018, 10:01 PM   #24
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Re: First Flip - Second House


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Originally Posted by Irishslave View Post
Stick with total generic....no fancy stuff. Concentrate on kitchen, bathroom, and curb appeal this is what sells a house....the rest just clean up and generic...let the buyer customize the way they want. I've done a dozen at least, Depending on market margins are tighter than you think they are. Always inspect HVAC, roof, and sewer cam before buying
Thank you very much. I was pricing everything out and I'm hoping to go no higher than 30k. I need to figure out what to do for curb appeal though. I'm thinking a front door may be needed.
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Old 05-24-2018, 01:25 PM   #25
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Re: First Flip - Second House


Howdy all,
So I got the house on April 30th and have been getting done what I can. I decided to do a lot more rip out then originally intended as I found some mold issues, and wanted to open it up more

I have been getting the house fumigated but still having issues with the cockroaches. I don't think the company spraying is doing a proper job as I caught him not even entering the house the one time he came. (Orkin)

I also ran into some serious wiring issue, copper to aluminum junctioned in the walls without boxes or proper marettes so there was loss of power to some outlets and little fires in the wall so I basically had to trace every feed and redo it. I pig tailed all outlets and switches.

So far I have done everything myself except taping so far, so work is going a little slower as I have to finish my regular 7:30-5 job before I can get there.









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Old 05-24-2018, 04:03 PM   #26
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Re: First Flip - Second House


You may not be a pro, but your certainly getting there.

You do not need appliances to sell a place. In fact, its probably better to sell *without* appliances so that the buyer can customize the appliances they want- and they would end up with a with a full warranty.

As far as flooring goes, theres different grade of flooring, even when you consider hard wood. If your doing traditional oak, theres a few grades- the lower the grade the more "knots" it has.

If your selling as a "rental" then it doesnt matter as much. But if your selling for a homeowner to move in, the demands are generally higher, but not at the tune of 7k higher. Check your local flooring yard for old stock- you can sometimes find some interesting stuff for cheap.
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Old 05-25-2018, 07:20 AM   #27
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Re: First Flip - Second House


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You may not be a pro, but your certainly getting there.

You do not need appliances to sell a place. In fact, its probably better to sell *without* appliances so that the buyer can customize the appliances they want- and they would end up with a with a full warranty.

As far as flooring goes, theres different grade of flooring, even when you consider hard wood. If your doing traditional oak, theres a few grades- the lower the grade the more "knots" it has.

If your selling as a "rental" then it doesnt matter as much. But if your selling for a homeowner to move in, the demands are generally higher, but not at the tune of 7k higher. Check your local flooring yard for old stock- you can sometimes find some interesting stuff for cheap.
Appreciate it!

I am really tired of doing the work myself, I told myself I'd never do it again after my first one (that im renting out) but with this being my first attempt to "flip" I don't want to end up burying myself in paying for labour until I get a feel for the market and how much profit I'll make.
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Old 05-25-2018, 12:11 PM   #28
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Re: First Flip - Second House


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Originally Posted by Frenchy93 View Post
Appreciate it!

I am really tired of doing the work myself, I told myself I'd never do it again after my first one (that im renting out) but with this being my first attempt to "flip" I don't want to end up burying myself in paying for labour until I get a feel for the market and how much profit I'll make.
One of the hardest lessons to learn in flipping... play to your strengths and strengths in numbers... if you're intent on doing the physical part of the work, do the work you're best at and hire the rest out... while you're doing what you're best at, your compounding time/progress by having other work in tandem...

By the time you figure in the extra carrying costs as the months drag on and the lost time (you're in prime time for home selling right now) and the wear and tear on your body working your regular gig, you're not making "profit" per se but just covering your hourly wage... the two are not the same...

Being in the flipping business is about maximizing and leveraging the amount of time you have in a year...

For example, would you want to do all the work yourself, on top of your regular gig like you're doing now and if you're lucky, sell one house a year, and make let's say $100K gross profit (before paying yourself for all the hours your put in to get to your NET profit) or instead, MANAGE 4-5 house flips with the SAME OR LESS time than you spending now on top of your regular gig, and make $50K per house which thus translates not only in more revenue, but how much you end up making per hour for your time PLUS NET profit?


Doing it all yourself is really confusing activity with accomplishment IMO...

Also, there's the added benefit that you're also contributing more to the local economy and guys like us... win/win...
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Old 05-25-2018, 12:40 PM   #29
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Re: First Flip - Second House


Everybody has to start somewhere. Buying 5 at a time and running crews while working full time is generally out of reach for most 8-5 People without plenty of ecoerience.

In the US, you can keep moving up tax deferred using t
1031 exchanges, keeping your labor untaxed until much later, so break even on when to switch from self performing to using a contractor happens at a lower personal rate than with no tax advantage.

I had this pegged at a $64k budget if it were all contracted out. Pocketing $34k minus carrying costs tax advantaged in your spare time isn't a bad deal.
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Old 05-25-2018, 12:49 PM   #30
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Re: First Flip - Second House


Around here, there aren't that many good flip candidates that come up.
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Old 05-25-2018, 01:50 PM   #31
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Re: First Flip - Second House


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Originally Posted by hdavis View Post
Everybody has to start somewhere. Buying 5 at a time and running crews while working full time is generally out of reach for most 8-5 People without plenty of ecoerience.

In the US, you can keep moving up tax deferred using t
1031 exchanges, keeping your labor untaxed until much later, so break even on when to switch from self performing to using a contractor happens at a lower personal rate than with no tax advantage.

I had this pegged at a $64k budget if it were all contracted out. Pocketing $34k minus carrying costs tax advantaged in your spare time isn't a bad deal.
That all depends on how much time you spent on building it yourself and the subsequent carrying costs, never mind delays when it interferes with your regular gig...

Agreed everyone needs to start somewhere... if you're not doing it currently, understanding and subsequent planning to get to the next level and recognizing the benefits of doing so usually helps that along...
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Old 05-25-2018, 01:51 PM   #32
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Re: First Flip - Second House


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Originally Posted by hdavis View Post
Around here, there aren't that many good flip candidates that come up.
Would certainly make it harder to find them when you have a regular gig and working on a flip by yourself...
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Old 05-25-2018, 02:01 PM   #33
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Re: First Flip - Second House


Quote:
Originally Posted by hdavis View Post
Everybody has to start somewhere. Buying 5 at a time and running crews while working full time is generally out of reach for most 8-5 People without plenty of ecoerience.

In the US, you can keep moving up tax deferred using t
1031 exchanges, keeping your labor untaxed until much later, so break even on when to switch from self performing to using a contractor happens at a lower personal rate than with no tax advantage.

I had this pegged at a $64k budget if it were all contracted out. Pocketing $34k minus carrying costs tax advantaged in your spare time isn't a bad deal.
You're saying rough estimate to have someone do my whole house would me 64k? I would honestly be happy with that, but as of right now I can use every penny.
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Old 05-25-2018, 02:15 PM   #34
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Re: First Flip - Second House


Quote:
Originally Posted by KAP View Post
One of the hardest lessons to learn in flipping... play to your strengths and strengths in numbers... if you're intent on doing the physical part of the work, do the work you're best at and hire the rest out... while you're doing what you're best at, your compounding time/progress by having other work in tandem...

By the time you figure in the extra carrying costs as the months drag on and the lost time (you're in prime time for home selling right now) and the wear and tear on your body working your regular gig, you're not making "profit" per se but just covering your hourly wage... the two are not the same...

Being in the flipping business is about maximizing and leveraging the amount of time you have in a year...

For example, would you want to do all the work yourself, on top of your regular gig like you're doing now and if you're lucky, sell one house a year, and make let's say $100K gross profit (before paying yourself for all the hours your put in to get to your NET profit) or instead, MANAGE 4-5 house flips with the SAME OR LESS time than you spending now on top of your regular gig, and make $50K per house which thus translates not only in more revenue, but how much you end up making per hour for your time PLUS NET profit?


Doing it all yourself is really confusing activity with accomplishment IMO...

Also, there's the added benefit that you're also contributing more to the local economy and guys like us... win/win...
I'm subbing out the following:
-Taping
-Interior Doors/Casing
-MAYBE trim and Base
-Kitchen install
-Plumbing (one of my employees is doing it if you would like to count that)
-I also forgot to mention that I did not install the exterior doors myself.
-Windows are brand new almost (someone has wrecked all the cranks) but I am replacing them anyways because I can get it done for free through our GreenOntario incentive.
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Old 05-25-2018, 02:23 PM   #35
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Re: First Flip - Second House


Quote:
Originally Posted by Frenchy93 View Post
I'm subbing out the following:
-Taping
-Interior Doors/Casing
-MAYBE trim and Base
-Kitchen install
-Plumbing (one of my employees is doing it if you would like to count that)
-I also forgot to mention that I did not install the exterior doors myself.
-Windows are brand new almost (someone has wrecked all the cranks) but I am replacing them anyways because I can get it done for free through our GreenOntario incentive.
I was going based on what you were posting...
Quote:
Originally Posted by Frenchy93 View Post
So far I have done everything myself except taping so far, so work is going a little slower as I have to finish my regular 7:30-5 job before I can get there.
Quote:
Originally Posted by Frenchy93 View Post
Appreciate it!

I am really tired of doing the work myself, I told myself I'd never do it again after my first one (that im renting out) but with this being my first attempt to "flip" I don't want to end up burying myself in paying for labour until I get a feel for the market and how much profit I'll make.
Looking forward to the end result...
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Old 05-25-2018, 05:56 PM   #36
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Re: First Flip - Second House


Quote:
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You're saying rough estimate to have someone do my whole house would me 64k? I would honestly be happy with that, but as of right now I can use every penny.
That was my rough budget. You can always spend way more.
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Old 05-26-2018, 11:49 AM   #37
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Re: First Flip - Second House


Quote:
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What's everyone's take on used appliances for resale.

I'm talking buying say a perfect condition $600 dollar fridge with a new price of $1700.

Note: I'm not really in a rush on this, so I have time to be resourceful.
Frenchy..... I like KAPs point a lot.... kitchens/baths/street appeal sell.

That's a tough call considering price and if you know it's history makes sense.

In general, I always sell off existing appliances on Craigs List and put in a matching appliance set from a BB..... if you have time, buy it at black Friday.... take delivery when you want.

I leave the stuff with interior packing on it, so people see brand new shiny appliances.

And free delivery.... I think it's very value enhancing.

Good going
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Old 06-21-2018, 08:45 AM   #38
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Re: First Flip - Second House


Hey guys,
I haven't really been updating with pictures because it's tough to see progress without paint!

As of this moment:
-Taper/Mudder has finished his work ($2500 for the whole house)
-To light a fire under my arse I purchased the kitchen which will arrive in 2 weeks.
-Drill out pot lights
-All walls and ceilings done in a thick coat of killz original to mask any of the rotten smells
-Last night I finished painting the ceiling (2 coats sprayed and backrolled)
-By the end of the weekend I want painting complete.
-Bathtub and shower pan are in.
-Backyard is complete minus the fence that needs to be cleaned up.

Still to do:
-Screw down the existing plywood floor to stop squeeks (I have about half left)
-Flooring
-Tile floors in bathrooms and showers
-Install toilets/vanities/sinks
-Get base/doors/trim guy in to do his piece
-Little odds and ends like cleaning up around the doors, etc.
-Clean up the exterior




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Old 06-25-2018, 07:02 AM   #39
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Re: First Flip - Second House


Hi all,
I need some opinions. I really dislike transition in flooring (like hardwood transitioning to tile) I wanted to do the upstairs bathroom, bedrooms and landing all in the same hardwood.

What are your thoughts on hardwood in a bathroom? I was thinking of hardwood and then some sort of sealer over top for protection.

I am at the flooring stage now and completed painting this past weekend finally. Pics to come.
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Old 08-27-2018, 12:21 PM   #40
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Re: First Flip - Second House


Well,
This project is coming to a close, here's the final numbers:

$445k for the house
$42k in material and subs
Subs: trim, exterior door install, a little bit of exterior sheetmetal work
$25k in real estate fees on the sale

List price will be $605k, will sell guaranteed or $599k.

I haven't added up how much all my time was worth on this yet and really don't want too hahaha

These pictures don't show it complete, still some little odds and ends that will be done this week like redoing the stairs, crown, level the fridge..




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