Flip #1, Frye Ave House

26 Replies

Hey all I am finally following what I love doing and it is wonderful! Being 24 yrs old and having a decent job etc most people thought I was crazy for taking this project on. I will be updating this post as I go until the home is listed. This is also my primary residence till its sold, then I will move on.

Here it goes:

Numbers:

Listing Price: $145k

Purchase Price: $113.5k (w/$3.5k CC)

Projected Renovation Costs: $20-25k

Projected Sales Price: $185-190k

Projected Profit: $35-42k

Before Shots: (Of what I have changed in the past two months)

Front:

Living Room:

Dining Room:

And my Favorite.... The Kitchen

Love the brick.  Gives it that... "I am in a pizza oven look"

I guess I should tell you about the house.......

Year Built: 1931

Approx 3,000 sqft with finished lower level game room. (super deceiving house)

3 Bed/3 Bath.

New wiring, new On-demand hotwater boiler system, 9 ft ceilings throughout

Now for the Afters:

Front (I am still trying to decide on colors etc)

Living Room (31x13) so I am using and staging it as a Liv/Din combo

Dining Room (16x16) being used as a Family room since there is a breakfast room off the kitchen.

Now for the Kitchen (12x13) Complete gut job. New painted maple shaker cabinets, calacutta/carerra marble backsplash, and light grey quartz counters. Longest part was waiting for the cabinets...

Showing the open shelves prior to counter, I just don't have a picture completed right now, haha.

And just because I like my place to look nice at night.... a waste of $99 but whatever.


Sean -

You're missing some numbers in there...

Don't forget to account for cost of money, taxes, insurance, utilities, agent commissions on the sell, and lawn care. Those can quickly eat up your profits.

Otherwise, the house looks like a great subject for rehab. You say many of these pictures are from 2 months in. Are you doing all of the work yourself?

Taxes were taken in to effect within those figures. I plan to hold for 13-24 months, lowering capital gains to 15%. I love cutting grass, so that is basically free, and my mother is a relator.... so most I would be paying out of pocket is 3.5% or about 8k. I am not counting insurance and utilities as a cost as I would be paying them anyways if I were to be renting. But, so far the utilities have been very reasonable, ~$130 a month (I've been warm, but I'm single so not one to complain!) I have a 30yr fixed mortgage at 4.265%, so that is relatively low.

To answer your second question, yes I am doing everything. Once I have everything wrapped up, by summers end, I will have it professionally photographed, not my iPhone haha.

@Sean McFadden  Sounds like a man with a plan! It's great that you've thought all of it through and are in tune with all the numbers. 

I'm not a tax guy but I think if you hold for 24 months and occupy the place the whole time you actually will avoid capital gains and taxes on the profit all together. Maybe someone else can chime in on that.

@Sean McFadden  

Beatiful, it almost brought me to tears...LOL  I remember my first one its trip down memory lane.....

Nice job with everything so far,  kitchen looks great....

Thanks guys. The kitchen has been my main focus since it is the largest project.

Next big project is my second floor bath.

The kitchen is gorgeous!

Working on my 2nd rental and it takes me a while to pick out exterior house colors too. I always look at the side neighbors houses to make sure I don't go in their color scheme.

My 2nd rental (bungalow style too) I choose these colors:

Sherwin Williams Dovetail Gray for body

Sherwin Williams Silvermist for upper portion of house, and front door

Sherwin Williams Peppercorn for the cement lower portion of foundation

@Sean McFadden Looks like a great job you are doing on the house.  You might want to think a little about calling it a flip, particularly if you are going to be doing more than one house at a time in the future.  Calling it a flip blurs a line and you want to make absolutely sure the lines are clearly defined because as you probably know taxes on flips are much higher than on a rehabbed primary residence.  The likelihood is  you will not have any problem, but if you do the onus will be on you to prove primary residence and calling it a flip makes it that much more difficult.  As you probably know logic is not part of the IRS modus operandi.  

Hey thanks guys for the feedback, makes me feel better about my renovations so far.

I was really tire of looking at my main floor bathroom. So, for two days after work I slaved to get this done. The before picture isn't the best but the walls were a dark carmel/brown color with a red horizontal stripe. There was this 23" deep oak vanity with an ugly cultured marble top blocking the flow into the bathroom. I was planning a total gut, but then I figured I'd see what I could do with what I had. The total reno here only cost me $251. Only cost left is to get a new radiator installed below the window.

Cost is as follows:

-American Standard "Standard Collection" Pedestal sink (new from Craigslist) $80

- Delta Faucet $120

- toilet seat $6

- Sherwin-Williams "Windy Blue" mistinted paint $5

- Sherwin-Williams "Dover White" mistinted trim pain $10

- MDF 1x4 trim boards $25

The Before

The After

If you live there for 2 years in 5 years before selling you don't have to pay tax on the gain.

Hey @Sean McFadden  ,

Great job on the flip so far! I absolutely love the marble backsplash and your lighting choices in the kitchen and those outside lights (those are awesome).

 @Nate Green:

Hey thanks. I really have been trying to create a house that is crisp and appealing. I really do not want my rehabbed houses to have the same feel as everyone else's typical rehab. The backsplash tile was is a blend of marble types and a standard 3x6 subway tile size. In the end it was roughly 60% (@ $5 a sqft) cheaper than a marble mosaic in the same pattern in solid Calacatta marble. 

@Sean McFadden

Yep! Grey never goes out of style!!

Did some new landscaping. That was a lot of sunburn haha

Looks like you've done a lot of really nice work!  Good luck on getting the last few things finished and getting it SOLD!!  Personally, I'd sell the thing and get on with the next house.  You'll make more in revenue than you'll save in taxes.  

Medium fpg logo horizontal 266x82Erik Hitzelberger MBA, Freedom Property Group | [email protected] | http://www.freedompropertygroupky.com | KY Agent # 68970

Went a little photo crazy today. No real progress to show, second floor is being reconfigured and drywalled. 

Very impressive.  Did u take those pics?

@George P.  Yes, I used a DSLR but still a long was to getting perfect lighting and staging for the listing photos. I assume thats a compliment, so thank you!

Yes it was. I like taking good pictures and like looking at good pictures too. Very nice composition.  

Cabinets from home depot?