I'd like to see what people put into a flip property ... Anyone gone overboard on a flip?
I put some pretty awesome travertine tile throughout a kitchen and bathroom. It looks gorgeous. I even included a tile medallion in the middle. In the end though... I don't think it helped. I probably would have been better off with linoleum!
Most expensive thing? A GC.... zing!
Honestly, I just dont splurge. I always joke how 'boring' our rehabs are, how they appeal to the lowest common denominator of HGTV watchers, but they sell pretty much right away. My cabinets/counters/paint/tile/doors/windows/roof color/carpet/flooring are all the same in each job, so its easy to not go overboard.
I mostly do rehabs that are in the first-time buyer kind of price range. And it's better in this range to just stick with basic stuff. I did recently make an offer on a house (but didn't get it) that would have needed a very high-end remodel. But that's not normal for me.
For me it may have been the ton of extra hours I spent doing needless things on the first one or two!
I will put items into houses not only for function but to achieve a wow factor. My improvements are usually for eye appeal first and function second. I want to tour as few people through a home as possible in order to achieve a sale. I evaluate the need, the cost and the benefit before making the decision. Marketing, is an expense and if adding an item will help motivate a seller we will make the change. Frequently we will replace light fixtures and vanities that function but are eyesores. We always keep in mind where we are in our cost projections as we all know that the end Apprasised Value should influence our decisions. Food for thought.
Even on our shared housing rentals that are being flipped over to passive investors, I almost always include top-of-the-line ceiling fans with remotes, upgraded faucets & shower sets, self-closing toilet lids & upgraded nickel or bronze hardware. It adds several thousand to each one of our projects but we get better renters because of it.
Mine are higher end so it's always granite and SS appliances to get the wow factor.
The most expensive thing I've ever put in to a rehab was a bad lease-option tenant.
Second most was a $16000 parking structure. (Can't find a picture, but it's impressive).
Got a house we are doing right now that will get a $7,000 stair banister.
I'm so into lighting- I put chandeliers in my kitchens....I'm not sure if its for me or for the people buying it but hey multiple offers usually over the list price works for me.. I try to justify it but really who needs chandeliers in the kitchen.
I can honestly say the most expensive thing I've done on a single item is $4500 for an hvac unit.
My personal goal is to get a 100% return on any item I install on a house (total price + labor = $100, sales price goes up to recoup the $100 and puts another $100 in my pocket). It's a frugal way to invest and you certainly won't win any beauty contests but I want to be able to undercut EVERYONE should the need arise. It's a really good checks and balances system for me to not over invest my funds.
Market conditions a lot of time will dictate what you put into a house.. In a rip roaring market you can be less attentive to detail and nicer finishes. In a really down market you end up with Slab Granite and SS appliances in a starter home to set yourself apart and get that one buyer that may be out there.
Usually the most expensive thing you put into a house is something that was missed or unexpected.. I just did a basement and it was a boulder field boulders as big as cars that ran 40k over budget...
And I just put a Wolf range and Hood into an upper end home that was about 15k for that .. Won't get double my money back for it.. but in a market were sales are competitive it will make my house sell before the next guy who put in builder grade appliances.
@Patrick Jacques Great Topic
High end kitchen on flip I was involved in 2004. A "walk in" refrigerator/freezer/wine cooler for house that sold for 1.3 million. $26,000 the unit/box cost. Not including install. Looking for pics. Funny house has been vacant for 2 years and 3 months and the foreclosure process is midway. That said I got inside and the house is destroyed and I suspect will go for about $450,000. ARV about $600,000 today. IMHO renovations over $150,000 to get it into shape. Sad. The r/f/wc I put in was badly damaged and compressors were cut and taken.
I've been part of some pretty large flip projects. Several with remodel costs in the 6 figures. We've taken homes pretty much down to a wall or two and rebuilt them with an extra 1000sf. The single most expensive item, though, would be having a pool installed. They run between 20-25k. We have also done a set of 5 large (25-30ft) trees that had to be craned into place over the million dollar home we were working on. It's been a while, so I'm not completely sure, but the total on that came between 11k and 14k.
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