Some before and after photos of my current project..
Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes
Some before and after photos of my current project..
Most Popular Reply
Mike ReynoldsPro Member
construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes@Olivier Mader Love that peppermint striped lighthouse wallpaper border. You are going to leave that right lol?
Looks like you had a pretty good job one that one. Do you have anymore after pictures?
50 Replies
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Just a added note.. The bonus room conversion was a lot of work.. Close off windows between main house and bonus room as it's not a good idea to have windows towards the inside of a room, lower the ceiling and install insulation and AC ducts as also lots of framing and drywall work. Also had to run a fresh electrical circuit from the breaker panel and do all the electrical in it..
- Bridgeport, CT · Member since 2017 · 38 posts · 8 votes8y
Not my primary.. I bought it as a rental but due to tax reform likely passing, I will flip the house instead.. Tax reform adds additional 15.2 percent in taxes on rental income, bringing the effective rate to 40 percent tax on my rental income.. That is too much.. I rather flip and pay 15 percent capital gains tax..
So what’s the next move anyone can do to keep doing the rental business because I know that the new reform go to affect the rent profit but something have to be able for do
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Here are the numbers:
Purchase Price: $45100 (pre-Auction bid on Auction.com)
Rehab costs (so far): approx. $22000. Expect to spend another $3k to $5k until the house is done
Resale value: $175k to $185k based on comps..
If I was going to rent it, it would rent for about $1400 per month which is a reasonable rent for a 4/2/2 home in the area..
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Amauris Lora:
Not my primary.. I bought it as a rental but due to tax reform likely passing, I will flip the house instead.. Tax reform adds additional 15.2 percent in taxes on rental income, bringing the effective rate to 40 percent tax on my rental income.. That is too much.. I rather flip and pay 15 percent capital gains tax..
So what’s the next move anyone can do to keep doing the rental business because I know that the new reform go to affect the rent profit but something have to be able for do
Many Landlords only rent homes for minimal profit, so the new tax won't hurt them too much.. They only rent the homes until the property values rise and then they sell the properties.
I have no mortgage on my rentals. I therefore have no property insurance. I do most of the maintenance myself too. My write-offs for tax purposes are minimal. 90% of my rent is profit. Most landlords have a much lower profit margin.
- 8yMindy JensenPro MemberBiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
Wow, @Olivier Mader . Every time I think I see the ugliest "before" house, BiggerPockets Members prove me wrong. Nice job.
@Olivier Mader the assumption on tax reform seems premature, the bill hasn't been confirmed yet in its final state. I'd be interested to compare transaction costs versus the tax benefits of depreciation etc.
You did a marvelous job on the renovation but the justification for the flip seems a bit preemptive on the basis that tax reform implications haven't been finalized.
Best of luck!
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Mindy Jensen:
Wow, @Olivier Mader . Every time I think I see the ugliest "before" house, BiggerPockets Members prove me wrong. Nice job.
Thanks.. The house was scary looking but was structurally 100% sound.. I actually own the house across the street from it too which was built by the same builder.. Dimensional wood and not plywood on the roof. all block construction with zero cracks anywhere (unusual for a home built in 1969) (except for addition which is wood frame). It really does not matter if the house I'm working on is a little bit bad or very bad. I usually tear out everything anyways and rebuild. I even change out every single outlet and switch and replace them with nice square outlets and switches.. I remodel every home like it was my own..
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Gus Ross:
@Olivier Mader the assumption on tax reform seems premature, the bill hasn't been confirmed yet in its final state. I'd be interested to compare transaction costs versus the tax benefits of depreciation etc.
You did a marvelous job on the renovation but the justification for the flip seems a bit preemptive on the basis that tax reform implications haven't been finalized.
Best of luck!
I can still rent it if the bill does not pass.. I probably will. I'm currently working a full time job and do the home flipping/landlord thing on the side but I expect to be laid off at work soon as the system I'm working off will eventually be replaced.. I won't leave on my own as I've been with the company for 14 years and if I quit, I lose my severance package which would be over $100k... Those $100k would come in handy when investing in Real Estate.. Once I'm full time investor, I certainly would have to pay that tax on rental income if tax reform passes. Right now, it very much looks like it will pass :-(
@Olivier Mader great rehab. Are those travertine tiles on the bathroom wall (looks good) and the numbers are great man.
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Zain B.:
@Olivier Mader great rehab. Are those travertine tiles on the bathroom wall (looks good) and the numbers are great man.
They are travertine look ceramic tiles..
- Memphis, TN · Member since 2017 · 10 posts · 4 votes8y
Amazing job with the rehab! I'm starting a (much smaller) DIY rehab on my 1st property. I may steal some of your design ideas for myself, hope you don't mind lol
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Alvin Sharp Jr.:
Amazing job with the rehab! I'm starting a (much smaller) DIY rehab on my 1st property. I may steal some of your design ideas for myself, hope you don't mind lol
Thanks! Feel free to copy any of my designs!
- Rental Property Investor · Salem, OR · Member since 2017 · 696 posts · 660 votes8y
Originally posted by @Olivier Mader:
Originally posted by @Dean H.:
Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.
Again, GREAT JOB
I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sam.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..
Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Dean H.:
Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.
Again, GREAT JOB
I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sam.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..
Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?
I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..
- Rental Property Investor · Salem, OR · Member since 2017 · 696 posts · 660 votes8y
Originally posted by @Olivier Mader:
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Dean H.:
Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.
Again, GREAT JOB
I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sam.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..
Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?
I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..
And I assume they wouldn't approve it? That sucks. Even a simple single member LLC would allow for the income to be taxed at the new lower Fed rate
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Dean H.:
Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.
Again, GREAT JOB
I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sapoom.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..
Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?
I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..
And I assume they wouldn't approve it? That sucks. Even a simple single member LLC would allow for the income to be taxed at the new lower Fed rate
I can only do that once I'm laid off. I would like to get laid off to work full time on properties but I don't want to lose my severance package, so I can't quit or get fired.. I may incorporate after I get laid off. However, there are problems with incorporating. As a private person owning property, in the State of Florida, I do not need a contractors license to work on my homes as long as I pull permits where applicable. Once the home is owned by my corporation, I can't legally pull permits anymote. I would need a licensed contractor and that would get too expensive. I do 99% of all work myself. What I may end up doing is to buy the property as a private person, remodel it and then quit claim it to the LLC and rent it via the LLC.
- Rental Property Investor · Salem, OR · Member since 2017 · 696 posts · 660 votes8y
Originally posted by @Olivier Mader:
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Dean H.:
Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.
Again, GREAT JOB
I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sapoom.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..
Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?
I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..
And I assume they wouldn't approve it? That sucks. Even a simple single member LLC would allow for the income to be taxed at the new lower Fed rate
I can only do that once I'm laid off. I would like to get laid off to work full time on properties but I don't want to lose my severance package, so I can't quit or get fired.. I may incorporate after I get laid off. However, there are problems with incorporating. As a private person owning property, in the State of Florida, I do not need a contractors license to work on my homes as long as I pull permits where applicable. Once the home is owned by my corporation, I can't legally pull permits anymote. I would need a licensed contractor and that would get too expensive. I do 99% of all work myself. What I may end up doing is to buy the property as a private person, remodel it and then quit claim it to the LLC and rent it via the LLC.
Make sure you check how not needing a license for trades (usually people mean Electrical and Plumbing) applies to properties intended to be rentals. Worth knowing if they restrict that. I think your idea of getting them done then moving into a LLC is smart. You will want the asset protection of being in a LLC as you get larger. Good luck with everything and KEEP THAT JOB or A job...things grow so much faster when you can throw extra money and profits into growing instead of having to live on them.
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Richard Sherman:
Originally posted by @Olivier Mader:
Originally posted by @Dean H.:
Great job. I love these type projects but I follow the " why eat lamb today when you can sell wool for years" idea and keep them for rentals.
Again, GREAT JOB
I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job... However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sapoom.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..
Wouldnt you be able to just put all your rentals into a LLC (or even a Partnership with your spouse etc which would give you a K1?) Then as a pass through entity your income would be 20% Fed?
I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..
And I assume they wouldn't approve it? That sucks. Even a simple single member LLC would allow for the income to be taxed at the new lower Fed rate
I can only do that once I'm laid off. I would like to get laid off to work full time on properties but I don't want to lose my severance package, so I can't quit or get fired.. I may incorporate after I get laid off. However, there are problems with incorporating. As a private person owning property, in the State of Florida, I do not need a contractors license to work on my homes as long as I pull permits where applicable. Once the home is owned by my corporation, I can't legally pull permits anymote. I would need a licensed contractor and that would get too expensive. I do 99% of all work myself. What I may end up doing is to buy the property as a private person, remodel it and then quit claim it to the LLC and rent it via the LLC.
Make sure you check how not needing a license for trades (usually people mean Electrical and Plumbing) applies to properties intended to be rentals. Worth knowing if they restrict that. I think your idea of getting them done then moving into a LLC is smart. You will want the asset protection of being in a LLC as you get larger. Good luck with everything and KEEP THAT JOB or A job...things grow so much faster when you can throw extra money and profits into growing instead of having to live on them.
The rules are very simple.. If the property is in your name, you do not need a license for just about anything except air conditioning I believe. If the property is not in your name, you either need a license or hire a licensed contractor.
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Finished the exterior of the house and ended up renting it.. Tax Reform did NOT impose Self Employment taxes on rental income, so I decided to rent it out.. Rented it out for $1375 per month.. Considering my $70k total cost, that equates to over 20% ROI..
I listed it for Rent on Zillow and within 3 days, I had 8 qualified applicants..
- Philadelphia, PA · Member since 2018 · 4 posts · 0 votes8y
Wow, that is beautiful work. How much would it have costed you had you used a contractor as opposed to DIY?
- Investor · Lakeland, FL · Member since 2016 · 105 posts · 61 votes8y
Originally posted by @Elaine Wanjiru:
Wow, that is beautiful work. How much would it have costed you had you used a contractor as opposed to DIY?
Probably about $30k to $40k in labor..
Markups are really huge for things like Kitchens and bathrooms.. A nice bathroom remodel with a wood/granite or marble vanity is at least $8k to $10k but costs me less than $2k.. A nice kitchen with all wood (non oak) cabinet and stainless appliances costs $15k to $20k. Did the entire kitchen for about $5k
- Philadelphia, PA · Member since 2018 · 4 posts · 0 votes8y
Originally posted by @Olivier Mader:
Originally posted by @Elaine Wanjiru:
Wow, that is beautiful work. How much would it have costed you had you used a contractor as opposed to DIY?
Probably about $30k to $40k in labor..
Markups are really huge for things like Kitchens and bathrooms.. A nice bathroom remodel with a wood/granite or marble vanity is at least $8k to $10k but costs me less than $2k.. A nice kitchen with all wood (non oak) cabinet and stainless appliances costs $15k to $20k. Did the entire kitchen for about $5k
Insane!! It helps to be handy in this business. Thanks.
- Real Estate Agent · Cleveland, OH · Member since 2018 · 73 posts · 31 votes8y
Beautiful Job, I actually liked that hexagon blue tile in the before photo. That style seems to be coming back! Nice work.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.