First time flip suggestions
Hey BP Fam, I am planning on doing my own fix and flip relatively soon. I have been an agent in Columbus, Ohio for 2 years now and I think I am ready to take the steps to do a fix and flip. Now I know a decent bit about fix and flip as far as analyzing properties and markets but not so much on the construction side. I am looking for some resources that could help me get a better grasp on what material costs are and how much bigger projects should be costing in my area. I am also very open to connecting with potential contractors or people knowledgeable on this topic. Lastly if anyone has anymore suggestions for someone in my shoes that may not exactly relate to the question feel free! I am very open to suggestions. Thanks in advance!!!
Outside of speaking with local contractors, you can use the "Rehab Estimator" tool in the menu bar and read J Scott's book on Estimating Rehab Costs.
I hope this helps.
I wish you all the best.
I'm not a fan of any "rehab estimator" or book that was written years ago. The cost of materials is continuously fluctuating, and can vary quite a bit by market, so any tool or estimator won't be up to date or accurate. You may get a very general idea, but I wouldn't be making business decisions on the information that it gives you.
The cost of materials is relatively easy to estimate with just a little internet research. The cost of labor will be your bigger expense, and can be more difficult to estimate on your own without first talking to contractors. Start talking to other flippers. Find out who they're using for what, and start getting estimates. The more contractors you talk to, the better you'll begin to understand not only the cost of materials and labor, but the expected timeline as well.
First flips are not easy. Feel free to reach out if you're looking for more specific info.
As Matt mentioned, books are out dated as soon as they are published especially in recent years where prices fluctuate almost every time we look at them. Lumber, electrical, etc. is worse than the stock market. Many things are back ordered and that can kill your timeline and hence costs on a project.
You did not mention how much you plan on doing yourself versus contract out. Also will this me a cosmetic rehab and flip and a total gut job?
I would join a local REIG and ask members a few things . . . 1) who do they use for jobs - referrals are gold, 2) what areas are worth looking closer at and 3) what do they use for estimating; i.e., they do it or they have a contractor on their team that does.
Again, first one will always show things you forget getting into the flip but learn and move on. We are her to help
Quote from @D’Andre Ortiz:
Hey BP Fam, I am planning on doing my own fix and flip relatively soon. I have been an agent in Columbus, Ohio for 2 years now and I think I am ready to take the steps to do a fix and flip. Now I know a decent bit about fix and flip as far as analyzing properties and markets but not so much on the construction side. I am looking for some resources that could help me get a better grasp on what material costs are and how much bigger projects should be costing in my area. I am also very open to connecting with potential contractors or people knowledgeable on this topic. Lastly if anyone has anymore suggestions for someone in my shoes that may not exactly relate to the question feel free! I am very open to suggestions. Thanks in advance!!!
Have you talked to the property manager, Donny Thompson, in your office? He would be a great resource
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First find a reputable general contractor, and then find a property that is very similar to what you are going to be looking for.
For example, lets you are wanting to target a 3 bedroom, 2 bathroom, 2,000 square foot single family home. One that just needs a cosmetic update.
Find a home that meets that description, and use it as a case study with the local general contractor.
Explain to them exactly what you would like to do with the home (inside and out), and have them give you some numbers on what that would cost.
Do this same exercise a few times with a couple different contractors. You'll get a grasp on what it costs to remodel a home in your area pretty quick.
Quote from @Scott E.:
First find a reputable general contractor, and then find a property that is very similar to what you are going to be looking for.
For example, lets you are wanting to target a 3 bedroom, 2 bathroom, 2,000 square foot single family home. One that just needs a cosmetic update.
Find a home that meets that description, and use it as a case study with the local general contractor.
Explain to them exactly what you would like to do with the home (inside and out), and have them give you some numbers on what that would cost.
Do this same exercise a few times with a couple different contractors. You'll get a grasp on what it costs to remodel a home in your area pretty quick.
Thank you sir!
Quote from @Remington Lyman:
Quote from @D’Andre Ortiz:
Hey BP Fam, I am planning on doing my own fix and flip relatively soon. I have been an agent in Columbus, Ohio for 2 years now and I think I am ready to take the steps to do a fix and flip. Now I know a decent bit about fix and flip as far as analyzing properties and markets but not so much on the construction side. I am looking for some resources that could help me get a better grasp on what material costs are and how much bigger projects should be costing in my area. I am also very open to connecting with potential contractors or people knowledgeable on this topic. Lastly if anyone has anymore suggestions for someone in my shoes that may not exactly relate to the question feel free! I am very open to suggestions. Thanks in advance!!!
Have you talked to the property manager, Donny Thompson, in your office? He would be a great resource
I have not yet. I will though. Thanks for the suggestion. Are you able to message me privately?
Quote from @Andy Sabisch:
As Matt mentioned, books are out dated as soon as they are published especially in recent years where prices fluctuate almost every time we look at them. Lumber, electrical, etc. is worse than the stock market. Many things are back ordered and that can kill your timeline and hence costs on a project.
You did not mention how much you plan on doing yourself versus contract out. Also will this me a cosmetic rehab and flip and a total gut job?
I would join a local REIG and ask members a few things . . . 1) who do they use for jobs - referrals are gold, 2) what areas are worth looking closer at and 3) what do they use for estimating; i.e., they do it or they have a contractor on their team that does.
Again, first one will always show things you forget getting into the flip but learn and move on. We are her to help
Awesome advice. Thank you!!!
Quote from @D’Andre Ortiz:
Quote from @Remington Lyman:
Quote from @D’Andre Ortiz:
Hey BP Fam, I am planning on doing my own fix and flip relatively soon. I have been an agent in Columbus, Ohio for 2 years now and I think I am ready to take the steps to do a fix and flip. Now I know a decent bit about fix and flip as far as analyzing properties and markets but not so much on the construction side. I am looking for some resources that could help me get a better grasp on what material costs are and how much bigger projects should be costing in my area. I am also very open to connecting with potential contractors or people knowledgeable on this topic. Lastly if anyone has anymore suggestions for someone in my shoes that may not exactly relate to the question feel free! I am very open to suggestions. Thanks in advance!!!
Have you talked to the property manager, Donny Thompson, in your office? He would be a great resource
I have not yet. I will though. Thanks for the suggestion. Are you able to message me privately?
Yup!
I am working on starting my first rehab and flip project too. A few things that have helped me get the ball rolling and get out of analysis paralysis.
1) Build your own rehab and flip calculator or find one online. Find a home for sale or one that has sold and start filling in the variables on a calculator so you can get a feel for what all the costs are. Use best guess assumptions to get started then start calling companies for quotes.
2) Find a General Contractor who is experienced in doing flips and ask to go and look at one of the current projects. That is a good way to see the quality of their work and probe how much stuff is costing.
3) Based on your funds available start to put together your "buy box" - target location and price range
4) Building a team: real estate agent, contractor, mentor
Hope that helps, feel free to reach out if you have more questions.