Diary of The Bullet Hole House Flip
Hello! Thought I would take some time and start a deal diary on my Third Flip. Flip #1 was a success at 19k profit, flip #2 broke even (depressed about that but I'll get around to writing about it someday), and here we are at flip #3. I thought it would be fun to keep a deal diary to see the roller coaster that these projects can be and how plans can change. We are in escrow and should close this week or early next week (just waiting on verification of clear title). My other two flips were in Arizona. This one is in my hometown of Santa Barbara, CA. A weird and insanely priced market. For fun go on any realty website and look at the average cost of a 4/2 house. Regardless of price this is going to be a VERY basic STARTER home. Number breakdown:
Purchase price of $700,000 (Yes, for an unlivable house, insane).
$25,000 paid to the investor who found this deal and passed it on to me because he is too busy with bigger development projects.
Our closing costs should be a few grand, I will post as soon as we actually close. Lets ballpark and say it will be 2k.
Money will be borrowed at 9% from private lender (family member)
Sales cost on back end will be 5% to realtors.
Hoping to sell the property for $899,000.
My dream timeline will be 6 weeks to get it on the market.
This will essentially be a lipstick rehab, which isn't my favorite thing. My investor (family member) is very anxious to get in and out of this property quickly and wants me to do the absolute minimal possible and throw it back on the market. I think we could get a higher price if I re-arranged the master bathroom, which would require knocking out a wall that connects to an oversized laundry, closing in a passage to the kitchen, and moving some plumbing around. I have experience with all of this, BUT I am respecting the request of my investor. Because I am borrowing from family that adds an extra level of complication and I need to respect that, and defer a little bit more to their expectations/requests than if I was financing on my own money (which is my goal, maybe after this project, obviously in a cheaper area).
Despite being essentially 900k ARV, this is a STARTER home and I need to remember that. I plan on doing very basic finishes (either cheap bamboo floors that are on sale for .98/square foot or maybe even luxury vinyl at .75/square foot). I'm not even doing tile showers.
I will put in new cabinets (lillyann cabinets), appliances, and granite or marble counters.
A new roof will be going on.
New interior doors (bought online, pre-hung at $39/door, basic 6 panel)
New windows - cheapest bid so far for labor and materials is $6200 (including a large patio door, that is the most expensive) we are doing them to code, so that adds a cost.
Popcorn ceiling removal, a lot of drywall patches
New light fixtures, outlets, switches, updating some outlets to GFCI
new baseboards (.70/linear foot at home depot)
new plumbing fixtures
plumb for dishwasher
paint interior and exterior
tile on floor in bathrooms
yard cleanup
Basic landscaping
Despite the "starter home" I will have the property fully staged. Santa Barbara is funny like that and I think it will really help get it sold quickly. Another change from my other flips is that I am actually working full time for this one. Luckily my husband has the morning off, so I am recruiting him to check the job in the AM and I am even having him meet some of the subs for bids. I have comprehensive lists I have typed out for him meeting each trade to get an accurate bid. I'll post a picture of that too. This being my third flip I am feeling pretty good going into it, and feel that my organization/planning skills are vastly improved from the early days.
Now to the fun part, before pictures!
Yes, that is a bullet hole in the door
and that is the bullet in the window frame!
Should I keep the shower handles? Are they vintage or ultra modern?
A New Bathroom trend for sure.
So fresh and clean!
This is the master bathroom
I feel like the barefoot contessa in this gorgeous kitchen! lol ;)
Stove area
Backyard
Problem area in backyard
The car should be removed by the family by close of escrow (house is a probate sale thats been vacant for more than a year I guess).
I will post my cheklists later. So hopefully escrow closes soon and we'll see how this goes!