Anyone who does extensions as a flip?

[Lior Golan]

Hey,

I am doing my first Flip with an extension from the back. I didn’t finish it yet, but I was hang on on so much things that held me a bit.  
Is there anyone here who does extensions as a flip and had finished 1 or few? I would like to get some main key lessons that you’ve learned in the process.
thank you

[Bruce Woodruff]

By extension, do you mean addition? I think so, that's what they're called over here. And yes, I have flipped with adding on sq ft, but it's not really a flip then because you're talking s lot more time and money....Depending on the property there is still money to be made though....

[Curt Smith]

Lior, I hate to jump on folks but I'll give a nag and some help.   Geeze!!   Closed or closing and no GC/local experts to help?   Your months late!  Ok you're starting now great.

1)) My last cost estimate to take a 1940 2/1 1k sqft and pop out the back into a 1.3k sqft +/- was $120k.   Given contractors have nearly doubled the labor costs.  Please please do yiour profit math on $140k.  I'm serious!!!

2) occupant interests rates jumped a full point in 6 weeks!!!!! THis is huge hit for flippers profit risk. 2.8% just went to 3.8% (some might be still at 3.6%)). This will chop y9our buyer pool dramatically and your selling price. This is like the 2008 ARV price drop squeezing flippers with deals oin hardmoney loosing their shirts. Ok not (yet) as bad as 2008 price drop. Watchg youtuber "reventure consulting" for great REI price data videos.

3) Contractors are evaporating, moving to other areas, those here are 3-6mo out for a start.  I'm not kidding.     I have one guy who I can refer,  connect/PM me.

4) project cost over runs are worse then ever.   Now affordability being hit with rising mortgage rates.  :(

5) Join the local REIAs.  I'm a memver of GaREIA and has good flipper groups;  Northside flippers and Intown rehabbers.  Plus a google grouip email list for referrals.   Everyone;  join your local REIAs.  Join them all, then keep those groups that have the folks in who y9ou like and find are helpful.

6) early bird gets the worms. Espeically in flipping. You need to have this project on the market in 6 mo. I fear this will be one of those newbie 12 mo ++ flipps that ends up loosing money (holding costs, project over run, dropping ARV, increasing time on market blabla). Prob the 2nd worst time to start a flip. #1 worst was 2007-9-11.

Good luck, curt

[Jay Ragland]

We may can help we have did a few for ourselves and other investors. We operate as investors and a construction company. And we are not 3-6 months out with on-going current projects.