Houston, TX · Member since 2013 · 481 posts · 189 votes
I feel guilty of not being very active on Bp lately. so this post will hopefully motivate me to become more active in the forum
I recently bought an old house that will need lot of clean up and work. i paid 78k including closing cost for this and arv is around 125k. Let see if i can pull out a profit on this to post it in the success story forum.
Have anyone here ever work with an awkward old floor plan like this? Do i need to replace the tile roof as well? Can I power wash it? I never work with tile roof before. It also have an awkward master bath with the tub in the middle with no shower
Here are some pictures. any suggestion is welcome! I will post more picture and video as the project progress
Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
12y
Looks huge! How big is it? Your numbers may be a bit tight, I'm looking forward to following along! What's the scope of work look like and what are you planning to spend on rehab?
Looking forward to your progress. What are your initial rehab numbers on the project? Can you provide some more details on how you arrived at your purchase price?
It's 2000 square feet. I am hoping this is a cosmetic rehab and i am budget for 25k rehab. Yes, the number is tight. If i can sell it for 120k, I am looking at 120 -78k purchase price -25k rehab -2k holding -6k selling cost - and will end up with 9k of profit hopefully.not a fancy number but it's the best i can find in this market right now without spending any money on marketing. Hopefully it will give me some good experience.
Worst case scenarios, i will refinance and rent it out for 1300$ a month. I am still thinking if i should hold it as a rental or not since the rent is not so bad in this area.
Yeah, those are very tight numbers. No room for any contingencies. Your $6k selling cost seems a little low, no? It is 5% of the sales price, what about seller closing cost and credit for buyer's closing cost?
Investor · Los Altos, CA · Member since 2014 · 942 posts · 1k+ votes
12y
Huy Nguyen I think your renovation budget is low. Is this a town house? What is going on with the ceiling in the garage? Is that hole in the ceiling from water damage and if so has that been handled? With your ARV and budget where they are I don't think that you can do any major changes to the floor plan. Also if this is a town house there might be a HOA that gets in your way of any major changes. You might be better off doing a quick clean/polish and turn the property. Good luck with this one and keep us posted!
No it's a free standing house. I will sure have to correct the leak from the ceiling. Like you said, this is probably an entry level house for 1st time home buyers so don't plan to do any addition or modification to the floor plan, Just cosmetic update.
Hey @Huy N. , is that a patch of dirt area under the stairs? I have never seen anything like that before. What are planning on doing with that?
Holy hell, you're right! That's umm...custom! Yeah, that's it, custom. Not weird at all.
Good eyes! I just plan to build a deck and lay carpet over it to gain some real estate. I don't see a point for growing anything inside the house for now.
Houston, TX · Member since 2013 · 481 posts · 189 votes
12y
So we are one week into the project. Demo is done. The yard is being clean up. Ugly tree is gone. Ceramic tiles being installed. all Sheetrock fixed. paint is coming in.
The Dumpster is full of trash and there is still plenty left, and i have to order another one. I can't believe i already spent 1000$ just for removing the trash!
Right now my biggest concern is the master bath. I want to add shower into it but don't know what's the best way to handle this. Do i just put in another regular bath tub? or Should i build a standing shower? And what about claw foot bath tub? Anybody deal with the plumbing redesign when you put in a claw foot bath tub? Is it hard?
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
Thanks for the support! @Vicki Gleitz I will post more picture once we get the house painted and granite coming in. I am also stealing the idea from HGTV show about a vintage claw in bath tub. I'm excite to see how it will fit in the master bath as well. Hopefully it won't break my budget.
Yes this would make a rental deal as well. but i'm trying not to spread myself out too thin. I already purchase quite a few rental this year. I would love to flip this house for cash infusion to pay off some of the loan on my rental side
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
Well, It rained so hard today in Houston and i have the 1st complication already. The water leaked through the brand new Sheetrock that we just installed in the garage. Fortunately, My contractor said this is a small leak compare to that much rain we had, and should be easy to fix. I am hoping that he is right
Bathroom downstairs is almost done
damage fence replaced. ugly tree gone
I went to Costco to pick up 100 square feet of Laminate for the common area only to find out they are OnSale. 1.10 per square foot with underlay pad attached
I ended up buying 1200 square feet. I have 2 rental house will be up on lease, and more than likely one of them will need new flooring, or i will save these for the next flip job.
Houston, TX · Member since 2014 · 100 posts · 20 votes
11y
@Huy N. Looks like its coming along good. I have a few questions. Are you planning on putting granite in the kitchen and bathrooms or just the kitchen? Also, are you doing any staining through-out the house or leaving everything white? Lastly, the leak from the ceiling, how was it fixed?
i got a good deal on the granite so right now the plan is for the whole house. I do two tone paint through out the house. Everything white is a bit boring. The leak is from the Tile Roof. We just have to replace the damage tile, and shield the edge, i hope
Rental Property Investor · Louisville, KY · Member since 2008 · 342 posts · 123 votes
11y
Great thread Huy. I love reading diaries like this. It helps to learn what to do and what not to do. I'll be posting one too as soon as I pick up my first rehab.
Contractor / Flipper · Hayward, CA · Member since 2014 · 195 posts · 86 votes
11y
Hi Huy. I'm second on the suggestion of hold & rent, if your number for flipping doesn't work out as favorite as you hope. How much the renovation sets you back already? Are you still on track with your budget.
Seems like lots of work for $25k. Can we see a detail estimate from your contractor, just to have a feeling of how much they charge for what on your area?
Best of luck Huy. Have fun and learn a couple of things, like you said.
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
Hi @Nhi Nguyen,
Yea that's lot of work for 25k. I think i will go over my head again. I'm trying to save the deal by scoring some really good deal on material, plus a long term relationship with my contractors help out a lot. I will post the number once i have it ready. thanks for the feed back
Houston, TX · Member since 2013 · 481 posts · 189 votes
11y
Nice weather today. i stopped by the property randomly to check on the crew and everybody were working hard. I'm feeling grateful!
This is one of the wow moment when you realize that you are providing work and income to support 4 families, transforming property, making positive impact on neighborhood, move in qualified tenants/buyers, making Houston a better place to live!
Thanks for sharing and providing an update. I appreciate the courage it takes to do this "live" and show the good as well as the bad! Keep up the great work and even if this particular deal turns into a rental for a while, your drive and determination will make you successful!