BiggerPockets

CA Rehabbing Project Part I

Thursday, May 14

Hellow fellow investors. As promised in my last blog post, I would blog about my Granada Hills, CA rehab flip project I currently have in escrow with the bank. For those who missed my other post, I got this REO at a steal and was originally going to wholesale it to an investor, but my numbers came in even better than expected and I decided to keep it all for myself.

Now that the difficult part of getting the right deal under contract is complete, I have been getting my bids from contractors and service providers on all the rehab work needed for this project. I have been meeting several contractors at the property location going over in fine detail what I want done, and what I expect of them. I am still waiting for some final bids to come in and then I will make all the decisions as to who gets what job for each item.

Here is a list of items I will be doing on this project:

Demo wood paneling on exterior, stucco all areas where panelling was removed, replacing two windows and two window sliders, paint entire exterior including the eaves, repair damaged wood on eaves, very minor roof repairs, adding an attic fan with thermostat control, repairing pool tiles, replacing pool heater, replacing spa skirt with new wood siding and paint, adding carpet to living room and master bedroom, remodel both bathrooms including new shower, new tub, new tile, new vanities, new countertops, new sinks, etc, replacing all interiro doors with new 6 panel prehund doors from HD, adding new baseboards & door mouldings throughout entire house, painting entire interior of home, adding new stove, oven and dishwasher in kitchen, building shelving in pantry and adding a nice glass door, and finally doing a complete overhaul of teh landscaping both in front and back to create a very nice curb appeal.

My original budget was for $38,000 and it looks like I will be able to keep it to $30,000 or under. Next is to have my home inspector come out and inspect the property. I ALWAYS hire these professionals, no matter how well I self-inspect, simply for peace of mind and to have another set of professional eyes on the problem. I could easily have missed something or two. The cost is minor and is worth it to me. I recommend investors to get this done. Cutting corners to save a few hundred bucks does not seem like a smart move to me and if your deal is so tight, you can't afford this, you don't have yourself a good enough spread in your deal. Same goes for the appraisal. I will be ordering this as well. Although I pull my own comps and visit each of the properties in person, I want to have another opinion on my ARV price point. Again, it is worth the extra costs to me for another pros opinion. I am paying all cash for this deal, so an appraisal is not required, but it is by my standards and I also recommend other investors do the same. A mistake in your own inspection or appraisal could cost you much more than the simple costs of these two services.

In my next blog post, I will provide some photos of the project and update you on how the quotes came in, who gets the jobs, and what the status of the closing is.

William Barnard is Managing Partner of Nationwide Property Investments, LLC and President of Barnard Enterprises, Inc. Will participates in millions of dollars in real estate transactions each year and has experience in nearly every aspect of real estate investing, including rehab flips. Join his FREE Membership at www.nationwidepropertyinvestments,com and start or continue on your journey to creating wealth through real estate!

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