First shell flip budget

6 Replies

Hey guys new investor here, in Baltimore there’s townhome vacants ranging from shells that can be had for 2-10k, to gutted or leaky roof ones for up to 30k. I know that each house is different and I’m not asking for solid estimates. I was told that a gutted townhomes between 1,100-1,300sq would cost around 30k to be rent ready. Now that I’m aware of the Brrrrrrr technique I feel a little more comfortable jumping into the flip game since eventually I want to also hold a couple homes for rentals. My home have a 35k line of credit but no mortgage. I could cash out and get between 60-80k. 

Whomever told you that gutting a property and rebuilding it for 30K in Baltimore City literally has no clue what they are talking about, guts are running 50-55 dollars a sq ft, so 1000 sq ft will cost you 50k-55K to rebuild correctly.

Maybe the guy was talking just gutted or something. I thought that sounded extremely low. Thanks for the range so I think I’ll just stick with finding a modest rehab multiunit. When I wasn’t looking for my home it was hard finding a cheap house that roof didnt leak and spread mold throughout the homes. 

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@Steven King welcome to BP

Ian is right, the $30k number is way to low. Most areas where you can buy for 5-10 are  not worth doing a full gut rehab. You may be able to get a rehab done for 30k but it would not be what I call a "Full Gut". 

Originally posted by @Ned Carey :

@Steven King welcome to BP

Ian is right, the $30k number is way to low. Most areas where you can buy for 5-10 are  not worth doing a full gut rehab. You may be able to get a rehab done for 30k but it would not be what I call a "Full Gut". 

That’s what I was thinking maybe not a full overhaul. By shell I meant  new walls, floors, electrical, plumbing, havac, roof  

My mother ex owns apartment buildings and have contractors, just talked with him and he gave me a couple ideas for what approach I should take and his contractor price ranges to compare to other future rates. Been doing a little more reading and thankfully I’m taking my time need to learn more about refinancing and this 10 loan limit 

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