Wealth Building Steps Home >> Flip That House >> Flipping Real Estate
House #6: Real Estate Investing With Foreclosures
Flipping Real Estate
Real estate investing with foreclosures and flipping real estate does not have to be extremely complicated. House #6 is proof of that. This house was built in 2004 and is located in a very well kept subdivision and good central area on the suburbs of Atlanta. The only real problem with this house was that the HVAC and the cabinetry had been taken but that was all.
A lot of people tend to think that real estate investing with foreclosures is going to require massive amounts of money, time and construction/rehab work. That could be the case if that is the type of project you want. For example, take a look at Tom Tarrant’s awesome work and you will see a totally different type of rehab project. He gets into room additions, changing floor layouts, upscale details and a lot more. That is totally cool if that is what you want to do.
On the other hand when you look at what I did with House #6 you can see that real estate investing with foreclosures can be done with houses that need relatively little work and money. My initial estimates for flipping home #6 called for a $15,000 repair budget. Here is a non-detailed breakdown of my major expenditures:
- HVAC – $5,000. This included two furnaces, two condenser units and the copper refrigerant line all of which had been taken from the house. I got several bids for this repair and was pleased to find out that the contractor I have been using on all my previous job still came out to be the best value. Every once in a while make sure you keep your contractors honest by comparing their prices with others
- Cabinetry - $2,000. This includes all kitchen cabinets and countertops, a double vanity for the master bath and a single vanity for the 2d floor bath. This pricing beats Home Depot/Lowes pricing by a landslide.
- Carpet - $1,000. Again, I tested my carpet company against others and they gave me the best price.
- Appliances - $1,190. With contractors discount at Home Depot.
- Supplies - $1,800. This includes a lot, from lights to water heater and more.
- Labor - $2,300. This includes paint, plumbing, cabinetry installation, cleaning crew and more.
- Total Rehab: $13,500
So given my initial budget of $15k I was very happy that I could do the rehab and come under my estimate. I did make a few cuts in some upgrades I would have liked to do but as you will see from the pictures the house still came out really nice:
Front of the house all we did was paint all the white trim with white again, paint all the gutters (really made a difference) paint the shutters and the front door black, trim the bushes and lay down pine straw around bushes and trees.
Fresh new interior paint, new ceiling fan and polished the laminate floors
Brand new cabinets, countertops (Formica), sink, faucet, garbage disposal and all appliances. With the refrigerator I buy it but then say it's not included with the sale then I can use it as part of the negotiation if someone wants it
Pressure washed the deck then painted with light brown paint that looks more like a stain rather than paint (suggestion from my painter, glad I listened)
Turned a single vanity into a double. New cabinetry and tops
New carpet on 2d level. This time I chose a darker color than before, I think it gives a good contrast with the wall color.
New vanity cabinet, top and sink
There you have it, real estate investing with foreclosures does not get easier than that, at least in my experience. Overall it took us two weeks to do this rehab and get this house listed. So far my fastest and lowest cost rehab. Let’s see how it sells…
Comments or Questions?
Do you have questions?
Would you like to share your comments?
Use the box below to share with me and others!
What Other Visitors Have Said
Click below to see contributions from other visitors to this page...
Return from Real Estate Investing With Foreclosures to House Flipping
Return from Flipping Real Estate to Real Estate Investing home