I enjoyed chronicling my last journey for you all here so I will do the next one as well. This one is on Cuyahoga Falls, OH just like the last a few blocks away. This is a 950 sq ft. 3BR/1Ba ranch with a full basement, located on the corner of 6th and Portage Trail. The house is in very good condition, it needs new flooring throughout, complete kitchen and bath remodel, the two smaller bedrooms are getting new closets (currently no closets in them, so I guess they aren't technically bedrooms), a little work in the basement (it's somewhat finished and I just want to spruce it up), new windows, new entry doors, and a new concrete pad in the garage. I'm sure we will find a few other small things along the way.
Here are the vitals:
Purchase Price: 39,000
Rehab Budget: 24,000
I'm hoping to have this one be ready for the MLS on May 13th, 3 weeks from today. I know that is very aggressive, considering my 5 week timeline on number 2 turned into 8. I'm confident in it this time though, I have also given financial incentive to my contractor to get it done in that time so we shall see. They have already started the demo and should have most of it done today or tomorrow.
First obstacle to overcome is an issue with the water line coming into the house. Thankfully that is the cities responsibility and not mine. They will be back out tomorrow to more accurately diagnosis the problem. I will post pictures later today.
good luck! I hope flip #2 sells quickly for you. Numbers on this one look pretty tight. with purchase price and rehab budget you are at $63,000. I threw a $1,000 in for holding cost and 10% in selling cost. That leaves you with $12,000 in profit. Looks like your last project was over budget about $14,000 so this one could get tight quick. I may be looking at it wrong or you may have selling and holding cost in your rehab #s. Either way I will be hoping everything comes together perfectly for you!
Agreed, it seems pretty tight. My first rehab had a much higher margin than that and we're going to be lucky if we break even.
Originally it was 92k purchase price, 25k rehab, 160 ARV, 7.25% Interest rate.
Rehab went up to 35k, and the max ARV we can get based on the current comps is around 150k (85% cost to ARV).
Make sure to count for closing costs and realtors fees on the back end, and the unexpected rehab costs.
On the surface yes, the numbers may appear to be tight, first my ARV is conservative. Second, closing costs are closer to 6% in my area. This is a cash deal and holding costs are minimal but included in my Rehab numbers.
The major reason for the cost overruns in my last house was that there was a foot of snow on the ground and there was quite a bit of exterior work that needed to be done. The other factor on that was the first budget was based on my numbers and not the final bid from the contractor. This budget is based on the bid from my contractor with an allowance budgeted in.
I am very confident that the numbers will work out to my benefit.
It would be good to see some before + progress photos if you have them
Originally posted by @Martin Peter :
Martin keep progressing its very inspiring to hear about your journey!
Here are some before pictures:
This is the "front" of the house. It really faces sideways.
Here's the kitchen. Complete gut job for it.
Bathroom will be gutted too.
New floors going in here.
Gonna put some floor down on this side of basement.
Here are some pics of the demo:
All the new drywall, doorway widening and framing should be done today hopefully. Things are moving right along on this house. I think the time estimate should be pretty spot on with things.
Going to see 4 more houses tomorrow.
I believe in your previous post you found the subject property on the MLS? Is that the case with this one as well?
This was an MLS deal too. All three I have done have been MLS deals. What I looked at last night were off the MLS as well. I have not built a network of wholesalers and right now am not even sure I need/want to. In the area there are enough things popping up that can keep me busy. Now that might change down the road if and when I am doing more of them, we'll see.
That does not mean I am opposed to an off MLS deal, I just haven't found the need to search them out right now.
Thanks for taking the time to document these here @Martin Peter . It's really inspiring to see and be able to follow along with. Best of luck to you on #3. I'm also looking forward to the final numbers on #2 after it closes.
Things are moving along. They should be tiling in the bathroom today. All of the walls are pretty much prepped. There seems to be a little more work to do in the new closet, but pretty much everywhere else will be ready for paint. Here are some new pictures:
New closet, in this room it goes as far to the left as the left edge of the duct. The BR on the other side of the wall has the other half of the closet.
Behind the wall right of the stairs is an office for the basement. Carpet will go in there, vinyl on the rest of the floor on this side of basement.
Arched opening from kitchen to family room. There is an original arched opening
that we matched this and another to.
Opening we didn't change.
There is a lot to do, but I think we can have it done by mid-week next week. Weather should be perfect to do some landscaping over the weekend. Hopefully I can get some pictures of a kitchen and bathroom then too.
I hve an offer in on #4 that I hope to hear about this week too!
So in need to get some pictures up of the completed project. I got the house up a week later than I had hoped, but that was not a big deal. House went on the market on the 21st and I got it under contract on the 22nd. Got a full price offer in under 24 hours. Here are the rough final numbers:
Purchase price: 39,000
Holding costs: 500
Sales price: 100,000
After closing costs I should clear close to 25,000. Closing is currently scheduled for the 23rd. I am very happy with this project. I will get some pictures up before the week is out. Number 4 is under contract.
For your 3rd flip, it seems like you are managing your timelines really well. If I'm looking at this right, 1 month rehab and then approx 1 month to close. I didn't see any major structural repairs, but it appears you completely replace the bathroom and kitchens. Good job and good luck with closing.
Thanks for the posts and great job on the flip! You seem to really manage things well for only your 3rd flip, well done!
Congrats on the quick sale and profit. A good friend of mine just sold his house on Bailey Rd in 1 day for full asking price. Seems like C Falls is hot right now!
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