Ruston, LA · Member since 2014 · 62 posts · 53 votes
Hey everybody! I purchased my first flip house back in August of 2016. I held this house way longer than I anticipated due to a full time job, other side businesses, and life being really busy! I contracted out 75% of the work and only did minor things myself such as Demolition, hauling off 15 trailer loads of limbs and brush from the yard, doorknob installs, etc.
I actually bought the house from a guy who lived out of State. We never met, we only ever texted and never even talked on the phone. He signed the documents from out of state and the lawyer handled everything. The owner hadn't even been to the house in probably 5 years. Diamond in the rough. I'll never find another one this good in my lifetime. I had just bought the house next door as a rental so I got his number from the previous owner.
A few of major upgrades: Roof replaced, windows replaced, fascia and soffit replaced, floors refinished, paint throughout every square inch of house, kitchen reconfiguration, cabinet doors, all lights replaced, ceramic tile added to office, laundry, and kitchen. Old storage room converted into office. Back deck replaced. Outlets upgraded, all new appliances, all new doors and hardware inside and out.
Monmouth , NJ · Member since 2017 · 21 posts · 4 votes
9y
Great work, question on the Reno costs. How would you characterize the level of contractors? High medium or low end?
Also did you use 1 gc and he found all the subs, did he include materials in the bid?
Thanks
Grand Rapids, MI · Member since 2017 · 4 posts · 1 vote
9y
Buddy! That looks great. Flipping isn't an easy business while also having a full-time job.
A wise man once said, "the deal of the decade comes along about once per week." Keep on keepin on with your research and I'm sure you'll find something even better.
Real Estate Agent · Lehi, UT · Member since 2017 · 5 posts · 0 votes
9y
@Brent Causey Nice job, I especially like the colors and the attention to detail- cupboard and door hardware. I have never seen a dishwasher and stove right next to each other, but I do like the fridge placement. Congrats on the flip!
Ruston, LA · Member since 2014 · 62 posts · 53 votes
9y
@Lisa Loveless Here's the logic. I'm a 30 year old single man, so sometimes dishes get left in the fridge for a while and they start to stink. Well, with the dishwasher right next to the fridge you can move straight from fridge to dishwasher without having to smell the nastiness! I'm kidding, but it is a good idea.
We had to move the fridge to create more cabinet space. We added the big double door cabinetry where the fridge was originally. It was not ideal, but that was about the only option that worked well without ripping out cabinets and completely re-doing the kitchen.
Real Estate Agent · Lehi, UT · Member since 2017 · 5 posts · 0 votes
9y
@Brent Causey I really like the addition of the pantry- absolutely genius from my point of view. I really like the fridge placement- having a fridge close to the door always makes for easy access when unloading groceries and it makes sense for those of us that like to do a lot of out door entertaining. A refrigerator close to the door makes grabbing a drink or meat for the BBQ an easy task. I think the kitchen has a great flow-- no criticism meant, just an observation.
Investor · Asbury, NJ · Member since 2015 · 226 posts · 205 votes
9y
Well done, congrats! Did you have the bathroom tile sprayed or replaced? I am trying to decide what to do with the same thing right now...yellow 4" square wall tile all around a bathroom and my GC says rip it out and put up drywall (my preference), my stager insists that sprayed white it will look awesome. She keeps telling me "you're not living in it, you're just selling it!"
Ruston, LA · Member since 2014 · 62 posts · 53 votes
9y
@Jennifer Petrillo I had the exact same problem. I used the rustoleum tile reglaze kit. It's really hard to find, nobody keeps more than a can or two in stock. Even amazon took 1-2 weeks to get it to me. It looks REALLY good. The house kept its original "feel" but also looks clean and updated. I hate when people rip the old stuff out and put in drywall and slate tile in a 1960's ranch style house. It just loses some of the charm.
My biggest advice is a) get a professional to do it b) follow the instructions line by line c) make sure and let it dry and put multiple coats. I think we used 7 cans of it total on those two bathrooms. We did the tub and walls. It's also really strong so make sure no others are working in the house.
I cannot attest to how long it'll last but there are some good reviews on Amazon that it seems to hold up.
Rust-Oleum 7860519 Tub And Tile Refinishing 2-Part Kit, White https://www.amazon.com/dp/B000PTSBKW/ref=cm_sw_r_cp_api_wug5ybHDV4V1K
@Brent Causey The house looks amazing. Great job! Can you tell us a little about how you financed this deal?
So The bank loaned me up to 80% of the after repair value. It appraised for 140 "with repairs" so I got 115 from the bank interest only and nothing down. I'm not sure if they used other collateral since I already had some other loans with them or they just used the equity in the house. Once that ran out I used a service called prosper - they're a peer to peer lender sort of like lending club. The interest is high but I only needed the money for 2 months. So I had a 20k prosper loan. I used one credit card for a few major purchases like windows and appliances. The little bit of interest I paid was worth it to see the return in the end. My advice is get creative but don't put yourself in a bind. It's very easy for something to go wrong that holds up the sale of the house and you don't want to lose your profit on loans. I tied up 0 personal cash in this deal.
Great work, question on the Reno costs. How would you characterize the level of contractors? High medium or low end?
Also did you use 1 gc and he found all the subs, did he include materials in the bid?
Thanks
Jeremy - I subbed it all out myself. I had a mixture of skill level. I got individual bids. Tile guy, window company, painter, etc. my carpenter was sort of a jack of all trades so he did a lot. I did a lot of the things that no one specializes in like ac outlet cover replacement, door knobs, yard clean up, demo, landfill runs.
Ruston, LA · Member since 2014 · 62 posts · 53 votes
9y
Just a few "quick tips" for anyone who's flipping houses. A few things I did/learned that seemed to help make things easier.
1) Invest in a keypad lock on the main entrance door. This is a life saver when you have people stopping by to give quotes/estimates. Once work begins, this also makes it easy for contractors to come in/out of the house without having to worry about a door being left unlocked, key misplaced, or running over to let someone in. Amazon or Lowe's has them for less than $100. Some of the more advanced have multiple codes so you can give people their own codes. Mine wasn't that fancy.
2) Invest in a deer camera (trail camera). This is a small digital camera that you can strap on a tree that will snap a picture when motion is detected. Mine was pointed at the driveway/carport. They make some that will text you pics immediately, mine was not that advanced. I would check the SD card once a month and pull the pictures off. This gives you a good idea of who's coming/going, etc. I had a painter who wanted more $ because it was taking "longer than expected". Pulled the pics off the camera and 50% of the time she was supposedly painting, I had pics of her sitting in the driveway playing on her phone. This also gives you some peace of mind to protect your tools, contractors tools, and help solve any theft related issues that may arise. Thieves are attracted to job sites.
3) Rent a DUMPSTER! I probably spent 20 hours to/from/at the landfill hauling off debris from inside the house and from the yard. Instead of spending the $500 on a construction dumpster, I spent probably $1,500 in man-hours and fuel hauling trailer loads of crap to/from the landfill. I will know better next time.
4) Get LOTS of quotes and TALK to everyone. I had some estimates that varied by less than $100 and some that varied by as much as $5k. Most contractors know other contractors they like to work with. I asked my tile guy who the best painter was, I asked my painter who the best roofer was, etc. These guys know who shows up to work and who the best at their trades are. Almost all of my subcontracts were a direct recommendation from someone else.
5) Check in and check in often. A number of times I stopped by the house at lunch or after work and caught a problem What you have in your head and what the contractors hear you say may be two different things.
6) Meet the neighbors. I had great neighbors at my project. I even did an "open house" on a Sunday afternoon after the project was complete to let the neighbors see the finished product. I posted the before pictures inside the house on a board for the people to view. This helps find a potential buyer, spread the word that you flip houses, and give your name a good reputation in the community for being open and friendly. This also allows you to get free feedback on your project from the general public who are usually pretty honest! Family and friends will sugar coat things sometimes.
7) Don't be CHEAP. In flipping profit is king, but sometimes going the "extra mile" to fix things right really make a difference in the finished product. The cheap route isn't always the best route. I think about it like this: What if I was selling the house to my grandparents? Would I want them moving in somewhere with shotty wiring, or hidden problems behind the walls? No. I would not. I had a few opportunities to save a buck, but spending the money ended up creating even better results. I upgraded the windows, added granite, and swapped out every single door and door hardware throughout the house. Those 3 things cost a total of probably $10k but added $25k in value (in my opinion).
Realtor · Shreveport, LA · Member since 2015 · 79 posts · 23 votes
9y
@Brent Causey Congratulations on the deal man, the house looks amazing. I'm located in Ruston as well and I'm attending LA Tech. Currently I'm trying to get my real estate license to realty jump in to real estate before I graduate. Let me know if you would like any help on any other projects you might have. I have some carpentry experience and would love to work together on something with you.
Realtor · Shreveport, LA · Member since 2015 · 79 posts · 23 votes
9y
@Brent Causey Also I had a few quick questions you said you tied none of your own cash in this property. But I was wondering about holding costs, was that a part of the 10k Financing costs? Did you pay the holding costs with your prosper loan? And was it hard to get a loan with no money down from the bank, which lender did you use?