I'm wondering if anyone on the forum has experience performing a high-end fix-n-flip on a townhouse in Brooklyn. Hot neighborhoods like BedStuy and Bushwick are chock full of them, and I'm considering doing one myself on an off-market property I've stumbled upon.
I'd love to hear pointers about how to estimate renovations, key features high end buyers look for, and what kind of returns folks are getting.
@Eric A. I haven't personally though I have clients who have. For starters in the kitchen spend the money on a stainless stove and fridge and spend less on the cabinets and countertops. Buyers will be impressed even though the majority won't use it. If there's a master bath, opt for a shower stall and put a tub in the second bathroom.
There are too many quick flip jobs in BedStuy and Bushwick and serious buyers are getting to understand the difference. If they don't the inspector will inform them. Happy to answer any questions you have.
@Eric A. good luck with this property! Lots of buyers so good work. Have you considered condo conversion? I have a lawyer that has done many it's a process that includes the DOB, the Attorney General, your own attorney and an architect but if you can get it done the price psf is worth it. On my block multifamily in good condition are selling for 500-600psf. Condos prices are crazy right now. I haven't done it but my lawyer has and he said his fee is around 30k. There are other fees you would have to explore.
I'm doing a Reno on my 3 family but I don't plan on selling. I renovated the top floor a few years ago and I spent about 80k. Right now in in the midst of a smaller scale Reno on the parlor floor and thats wrapping up at around 50k. I took a 1 bedroom/ 1 bath with dining and living and turned it into a 2 Bedroom/1 bath. I took out all the plaster, radiators then ran central heat/air. Next up is a new kitchen and bath. I ripped out all electric, moved the panel from basement to the apt, moved the kitchen to a new spot and moved the bath to the old kitchen. I'm on the fence about putting in a rear deck. The permit costs about 3k and the welder I use will charge 7500 for 18x6 steel deck with railing. Here are some pics. I'm about to install flooring and cabinets should be ready may 1. Keep in mind that I have my own guys and I'm not looking to sell only fixing a rental
@Eric A. just found the photos from the earlier renovation. That was 3/2 in the top floor. Just to give some perspective my townhouse is 20x36 so 50k and 80k go a bit farther in that small a space. I did replace the staircase at that point from ground floor to top floor and that was included in the 80k.
How are you generating your leads? Are you sending out mail ? REOs? Foreclusures? MLS? I'm interested in flipping but wanted to get advice on the best way to generate leads in the area.
@Donald Jeune I am a word of mouth guy right now. I'm not actively looking in Brooklyn right now
Pm me I'll pass along a broker I know. He has auction stuff and it usually sounds discounted. I don't look at them I'm focused on Westchester flips right now.
I have tremendous confidence in the market in Brooklyn. I've done pretty well on that house. I just don't have the cash to be a player in the market right now.
I took a cash out refi after that rehab above was finished. I simultaneously sold my primary which I had bought in 09 in a short sale. With the money from both transactions I bought a house in chappaqua. The rehab was extensive and pretty much wiped me out of cash. So I looked around for a bit and am now actively pursuing properties in the 350-550 ARV range. I goto auctions, talk to listing brokers of high DOM properties and I drive for dollars call bandit signs nothing too sophisticated.
I still have a full time job I work about 46 hours a week. Starting to lay the groundwork for early retirement.
I have some final photos on that reno above. Need to do a post on the chappaqua house that was a doozy. Bought it a little high and spent too much on the Reno. We did a lot of work I would never do on a flip. My wife and kids are very very happy so that was worth it. We lived on a busy road in a smaller house and it was a good time to move.