First Flip Complete - On the Market

21 Replies

Hi all - my partners and I recently completed and listed our first renovation project. It was not an easy one, since we are in CA and the property is in OH, but we made it through and are looking to take on our next project.

  • Bought: $79,900
  • Initial budget: $65,000
  • Real budget: $97,000 (mismanaged project by initial contractor (and second contractor))
  • ARV: $219,900

Improvements:

  • Brand new siding on the second floor (was not in the initial budget)
  • New roof (was not in the initial budget)
  • Sealed and painted the basement - was quite creepy down there before
  • Opened the floor plan from the living to the kitchen by widening an existing walkway
  • Moved the kitchen from one side of the house to the other to capitalize on the stained glass windows
  • Gutted the upstairs bathroom and added really good looking features
  • Added a half bathroom and laundry room downstairs by the entry to the backyard
  • New AC
  • New plumbing
  • New electric

Our contractor performed extremely poorly on this job, and I am happy to share a cautious word with anyone who aims to invest in Cincinnati about the team at Kaiker Development and Creative Customs Carpentry. They do not conduct their work with pride, let's leave it at that. 

This would have been a great deal for us to get started, but we learned a lot about long-distance investing instead of making money on this one. On to the next!

  • Key takeaways:
    • Maintain weekly on-site visits by a 3rd party. We lost communication with our contractor for weeks at a time, and given our proximity to the property were terrified of firing him because of the potential damage he and his team would cause, setting us even further behind. 
    • Security cameras are worth every penny. We did not have any up, but would have been a lot less concerned about the GC damaging our property if we had them. 
    • Don't lose hope. There were several times where we felt like we were going to lose money on this property, but we carried on and were able to finish the house. While we will not make money, we can stand proudly behind the finished product and someone's home.

Entry/Living Room:

Kitchen:

Bathroom:


@Stephen Herbert   Wow!  That looks amazing, great job!  Looks like you are in Sac, maybe we can chat sometime about your your strategies investing out of state, would love to learn more! 

Cheers!

Looks like a nicely done house.  Hope there was still some profit left after transaction and holding costs.

This is in Kennedy Heights, and has only been on the market for a few days.

At this point, we're more interested in making sure the end buyer is right for the home than making a substantial profit.

@Stephen Herbert This post is great!

The end result looks fantastic and if nothing else is worth the learning experience and the beautiful images you can use for marketing future deals. 

@Stephen Herbert Your flip is beautiful! I’m officially tracking your property to see how it ends up. I live in Cincinnati and own a rental here. Let me know if you ever need feet on the ground. I’m happy to help partner with you to make your OOS investing a little less nerve racking!
Thank you, Ryan - we are likely going to bring our investing back to our home state, but OH does still show a lot of potential for us in the future. I appreciate the kind words and will be in touch to discuss.

Originally posted by @Ryan Dietrich :
@Stephen Herbert Your flip is beautiful! I’m officially tracking your property to see how it ends up. I live in Cincinnati and own a rental here. Let me know if you ever need feet on the ground. I’m happy to help partner with you to make your OOS investing a little less nerve racking!
I certainly hope there is! The Redfin link is below:
https://www.redfin.com/OH/Cincinnati/6688-Kennedy-Ave-45213/home/76122790

Originally posted by @Sam Shueh :

Remarkable well done. Congrats. Do you mind attach the MLS links for sharing? May be someone here would want to purchase it.

Thanks

Sam Shueh

Thanks for sharing, @Stephen Herbert ! We are just getting started on our first rehab project in Cincinnati as well. Beautiful pictures, I am wondering about what you did for staging? Is that a real stage or a virtual stage? Who did you get in Cincy to do the staging?

Thanks

Hi Yehoshua - 

Thank you for the kind words. We staged the property and used Design to Market, LLC - Jo Potvin (www.designtomarket.com). She was a complete joy to work with, and the cost was reasonable. I recommend her and her agency. We are also using Scott McEwen as our listing agent, (he is an active investor locally as well) and he has also been a great partner in the process.

Pretty amazing... I heard Kennedy Heights and ARV of +215k and began to question this..... I didn't realize that neighborhood was fetching those kind of numbers. Congrats and thanks for teaching me a little about my own city.

Jake 

Great looking rehab project @Stephen Herbert - I love seeing the before and after pics because it helps me visualize the end product when I'm looking at property.

How did you select the specific staging company? There are a lot of them out there and it would be great to hear what key factors tipped your decision.

Awesome work!

Hi @Rich McElaney - our realtor is an active flipper himself and has worked with this staging company before. I spoke with 3-4, and the fact this company really brought passion and enjoyed their work was obvious in our phone call in their tone of voice, level of detail and the owner's personality. It was a fit, whereas the other stagers did not seem to have that same factor.

Realtors work with stagers all the time, so it would be worth asking yours who they recommend for the project.

Great job! It looks beautiful. I just just listed my first flip property 2 days ago and I already have 2 interested buyers going through the pre-approval process with our realtor. Fingers crossed! 

@Stephen Herbert I see you have sold your property. Congratulations on that! And on your positive attitude...I'm sure it wasn't easy to keep it as you were going through the process. 

What did you end up selling the house for? And how long did it take to sell?

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