I am looking at a 1300SF SFH. Major items include converting an office space to a full bath and walk in closet, existing bathroom renovation, new deck, add a new driveway and car port, kitchen renovation, new flooring, new windows and doors, paint, replace siding, replace roof and add some curb appeal. I have 3 estimates from four GCs for around 160K without negotiation. This is too high to justify the ARV of 350K. The asking price is 260K. I am quite interested in this property for multiple reasons , but the math isnt working. I dont see me getting the deal for less than 200K. So my question is, this is my first flip and I am wondering if I am missing something or doing too much. Use many subcontractors instead of a GC ? Get estimates only for labor and buy ALL the materials myself ? If will be more work for me which I am willing to do but is it worth the headache and risk ? Would welcome any advice.
I am looking at a 1300SF SFH. Major items include converting an office space to a full bath and walk in closet, existing bathroom renovation, new deck, add a new driveway and car port, kitchen renovation, new flooring, new windows and doors, paint, replace siding, replace roof and add some curb appeal. I have 3 estimates from four GCs for around 160K without negotiation. This is too high to justify the ARV of 350K. The asking price is 260K. I am quite interested in this property for multiple reasons , but the math isnt working. I dont see me getting the deal for less than 200K. So my question is, this is my first flip and I am wondering if I am missing something or doing too much. Use many subcontractors instead of a GC ? Get estimates only for labor and buy ALL the materials myself ? If will be more work for me which I am willing to do but is it worth the headache and risk ? Would welcome any advice.
One possibility would be to manage the project yourself (i.e. use handymen and subs and cut out the GC). This would be time consuming and if you don't have the contacts, probably not a good idea.
You could also reduce the scope of work. Does it need a full kitchen remodel or just new counters and painted cabinets with new pulls? Does it need another bathroom? Is the siding completely shot or just a few rotten spots that can be fixed and then painted? Etc. You many want to look at each upgrade specifically; how much value does it add to the property and/or is it actually necessary (say with the siding if it could be salvaged and just painted)?
There's also materials. I love LVP for flooring but it is expensive. Same with granite for counters. You could pull back a bit here (although with a full gut I would hesitate to pull back on material quality much if any at all).
Last point, on a project this size there will almost certainly be some change orders. And you have to expect holding costs. So it's going to be more than whatever the contractor bids. Just something to keep in mind.