You are here: › Flipping Home #6

Flipping Home #6: My Skinniest Deal Yet?

Flipping home #6 is my latest house flipping project. This one came to me from one of the agents I work with, they saw it on the HUD foreclosure list, and I got the first phone call so I could check it out before anyone else. Just like I had been told by more seasoned investors, when you start doing deals the deals start coming to you Smiley Faces.

I quickly liked this house for several reasons: it was built in 2004 so just due to age there cannot be a whole lot wrong with it. It has 4 bedrooms which is something I was constantly being asked on home flipping #4 and house flipping #5. It has the master bedroom on the main level, has a small pond in the back and the biggest plus of all it has a FULL basement. A lot of people here in Georgia go ga-ga over basements!

But what I like the most is that flipping home #6 is not going to require a lot of repairs or time. The biggest problem with the house is that the entire AC and furnace has been taken along with all the cabinetry in the house. If that is the worst I have to deal with, I’ll take it!

Those two things are going to be my big ticket items. So initially the scope of work and budget are shaping up like this:

  • HVAC including 2 x 2 ton condensers = $5,000
  • Interior paint = $1,000
  • Kitchen cabinets and countertops = $2,300
  • Water heater and plumbing repairs = $650 labor + $400 materials (including 40 gal. gas water heater)
  • Bathroom cabinetry – 1 x 36” vanity, 2 x 30” vanity, countertops = $500
  • All sinks, faucets, garbage disposal = $350
  • All interior lights: $150
  • Labor for cabinetry installation, final plumbing, misc. repairs = $1500
  • Carpet = $900
  • Garage door opener = $230
  • Closet shelving = $100
  • Appliances = $1100
  • Estimated Total: $14,000 + 10% = $15,400

Challenges on Flipping Home #6:

The only negative so far with this property is that there are other homes in the neighborhood also on the HUD foreclosure list. They are not in the condition that my property is going to be once I am done but still, they will be seen by any buyers and appraisers when they are considering my house.

So in order to flip that house I have to do all the repairs needed and then price it not too far from the other foreclosures in the neighborhood because they will be bringing down the prices. That means I will be pricing it in the low $100’s to be competitive. If I can somehow bring down my costs and price the house at $99,900 that would be even better. I believe there is an important psychological effect when a buyer sees a 5 figure price vs. 6 figures. That is just my theory…

The only problem is that gives me a pretty slim profit margin. I have learned that when flipping houses selling quickly is better than selling high so I think that in order to get the quick sale this price will do it.

Anyway, here are the house flipping, “before” pictures:

flipping home front view

Siding is in great condition so we will be pressure washing to clean it up and then repaint all the white to make it shine again. Trim the bushes and lay down some pine straw.

house flipping before pictures

Floors are in excellent shape so they stay. Switching fan for a brushed nickel one.

flip that house rehab pictures

All sinks and bathroom cabinets are gone.

kitchen of rehab project

Where’s the kitchen?

kitchen cabinet replacement

view on back deck

Hopefully the pond view will be a selling point…

master bedroom before repairs

All the lights are also gone.

repairs on master bath investment property

There was a single vanity here and we will make it a double which is a major plus in a master bathroom.

http://www.wealth-steps.com/house-flipping.html

house flipping pictures

attic

Where is the furnace?...and the AC?

repairs

…and the water heater?

home flipping pictures

repairing HUD foreclosures

Full basement, with plumbing for a bathroom.

repairing FHA foreclosures

Cut water lines…I tell you, there was some anger here!



Please check back soon for the follow-up posts on Flipping Home #6 or subscribe to my blog and RSS feed so you get the updates when they are posted. You can also receive new content through email.

Send Me the Wealth Insights Newsletter!


And I will send you a FREE Ebook and my investing spreadsheets

Your Best E-mail: spa First Name:


E-mail will not be shared with anyone.See our privacy policy.

Return from Flipping Home #6 to House Flipping Chronicles
Return from Flip That House to Real Estate Investing homepage

Have Questions or Comments? - Have your say about what you just read, use the box below (you don't need a Facebook account).

wealth steps rss feed

wealth steps facebook

wealth steps twitter

wealth steps google plus

Get on The Road to Wealth!
Subscribe and get access to my FREE ebook and tools for investing and managing your money.

Your Email:

Your Name:

Then

E-mail will not be shared with anyone. See our privacy policy.

wealth steps blogWealth Steps Blog
Newest Content:

wealth insights newsletterNew Posts by Email


Lets Connect!

Best of Wealth Steps
Most Popular:

My Current Project: Flip That House

Importance of Financial Planning

Signs That You Need Credit Counseling Debt Relief

The 6 Steps to Basic Financial Planning

My First Flip: Flip This House

Simple Net Worth Calculation


My Favorites:

Going From Debt to Wealth by Focusing on Wealth

Solutions To Credit Card Debt: The Debt Snowball Plan

Dealing With Problems When Flipping A House

Buying Foreclosures – Creating Wealth with Foreclosure Investing

Building Wealth Through Dynamic Planning