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 .
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:
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.
Floors are in excellent shape so they stay. Switching fan for a brushed nickel one.
All sinks and bathroom cabinets are gone.
Where’s the kitchen?
Hopefully the pond view will be a selling point…
All the lights are also gone.
There was a single vanity here and we will make it a double which is a major plus in a master bathroom.
Where is the furnace?...and the AC?
…and the water heater?
Full basement, with plumbing for a bathroom.
Cut water lines…I tell you, there was some anger here!