First Fix & Flip - How to Create a Scope of Work?

Question

Im not from the states but looking to do my first fix & flip in Vancouver Canada in an apartment/ condo. How do you go about creating a SOW exactly? Thanks for all your input!

Jake McVey · Answer

Hey Jefferson,

In my opinion the best way to go about this would be to look at comparables that have sold at your ARV and see what condition and finishes are in those units.  You'll want to match them, many people make the mistake of over or under rehabbing- all you need to do is figure out what is needed to be done to sell IN THAT SPECIFIC NEIGHBORHOOD and create your scope of work based on that.

Wendell Fong · Answer

Welcome to BP Jefferson.

You need to give more background on the project.    Do you already own the unit?  If it is a condo in Vancouver, you should start with getting a copy of the Strata Bylaws and see what you can do without requiring the Strata's approval.  ie. anything that involves structure, plumbing, electrical and needs a permit will likely need the SoW you describe and it to be approved by the Strata before you can proceed.

In my opinion, you are going at this backwards.  You should have a fixed budget, and a list of items that you really need to fix and those that you want to fix.  You also want to consider what items on the list will give you the biggest lift and highest ARV.

From the way you ask the question, it seems like you have a bottomless pocket full of $.

Best thing for you to do is to keep asking questions.  You also need a plan B for not being able to exit or flip the unit.  We are going into a rising interest rate environment, which may make it difficult for new borrowers to purchase your unit.  (reduce the pool of buyers)