From wholesaler to rehabber! Where to start????

Question

Hi Everyone!

For the past year I have been wholesaling in Virginia. I have a house under contract now in Sandston that I would like fix and flip. This would be my first fix and flip project that I am taking on by myself. Where do I began?! I've had 3 contractors come out and 1 realtor to take a look at the property. I think I know which contractor I would like to use. Now what?! The area is not a high income area, so do I have to use top of the line appliances and materials? I want to get the most return for my money. What other material would you suggest I use for the countertops, thats not as expensive as granite? Any help that anyone can provide on what I should do next is grratly appreciated!

Thanks!

Paul Timmins · Answer

@Nikki Howard

Congrats. Consider working with an experienced rehabber from the local REIA. Remember that rehab can take 2 months or 2 years.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

Good luck

Paul

Mary B. · Answer

So your first objective is to flip yet it sounds like it may end up a rental. Be prepared for that since its very probable as a newbie rehabber. Go to the top of this page, click 'Learn' the 'free how-to guides' then 'how to flip houses'. That should give you some additional insight. You have to have a plan in place that's for sure. You need to vet the contractor make sure that they are licensed & bonded; you need insurance for the duration of the rehab project. How will you fund the deal? Will you be making interest payments during the rehabbing? If so do you have the monies set aside already? Will you be the project manager or hire one? How much renovation is needed? Will it be a 3 week project or a 3 month project? These are some questions you have to be able to answer in order to move forward on this to rehab and I've just scratched the surface.

Kudos,

Mary

Jim Viens · Answer

I would match materials to the area. I'm working on a deal near me in a neighborhood very much like where I grew up and where I now live (homes sell for $65-$100k). Granite countertops there would be WAY overdoing it, so we're going with a nice-looking laminate. Same with cabinets...full custom cabinets is overkill so we're going with basic contractor-grade. We are planning on stainless steel appliances, but only the entry-level. Hope that helps...and good luck!