MRS. MINI VS MR. MAXI.......WHAT THE FLIP?????

Question

Looking at a property to flip looks like a sweet deal...

this will be my first flip with my spouse and we have difference of opinion on renovations.

Is there any members out there that work with their significant other in this business?

how do you deal on personal and business side?

Reno wise:

MINI- keep kitchen cabinets and restain, new countertops, new appliance, new floors, etc.

MAXI- gut kitchen, brand new cabinets, counters, appliance floors, etc

MINI- reglaze tub, replace floors, clean and repaint tile, etc

MAXI- gut bathrooms (2x), tile shower, glass showers (master), etc

etc....and so on..

What to do what to do?

Jon Holdman · Answer

Any dollar you spend on the property MUST generate more than a dollar in increase in the value of the property.  Simple as that.  Futher, you want the money you spend to generate the maximum return.  So, if you can spend $1000 on a mini solution, and add $2000 in value or you can spend $5000 on a maxi solution and add only $7000 in value, just spend the $1000.

It is really, really, really easy to overspend on a flip.  You JUST want it to be comparable to the comps.  A little better is fine.  Much better is a waste of money.  You MUST go visit other properties in the same area and figure out the neighborhood expectations.  Then do what it takes to be similar AND NOTHING MORE!

When you're improving you own home, the sky's the limit.  A residence is nothing but an expensive doo-dad.  So, if you can afford a uber-fancy bathroom and really want that, do  it.  Even if it doesn't pay back what you spend in the increase in the value of the house.  But when it comes to fix and flips, you must set aside your own desired and likes and just match the comps.

Danielle Jones · Answer

Thanks jon.