Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
Below are some before pics of my latest rehab. It's a 2 bed/1 bath 800 sq ft home in Charlotte, NC in a great area. I love these older homes and trendy neighborhoods.
Like so many others have said... nice job! I have a few questions I hope you can answer.
Going into this project, did you have a higher ARV and undercut the market a little to get it sold so fast? As you said, you had back-up offers coming in that were higher than the original offer... that leads me to believe that this was a "steal" for this neighborhood at $81k. My question is, how much did you under-cut the market, if at all?
Also, how far over the standard did you upgrade this house? I am looking at some flips that will sell for around the same price, but some of the upgrades you put in this house would be way too much for the neighborhoods I am looking at. I have read in the past (I think from J Scott) that it's a good idea to add 1 "flair" item. Maybe granite, or wood floors in the dining.. etc. Did you overkill the upgrades on this one to move it so fast, or are all those upgrades fairly standard for that area?
Like so many others have said... nice job! I have a few questions I hope you can answer.
Going into this project, did you have a higher ARV and undercut the market a little to get it sold so fast? As you said, you had back-up offers coming in that were higher than the original offer... that leads me to believe that this was a "steal" for this neighborhood at $81k. My question is, how much did you under-cut the market, if at all?
Also, how far over the standard did you upgrade this house? I am looking at some flips that will sell for around the same price, but some of the upgrades you put in this house would be way too much for the neighborhoods I am looking at. I have read in the past (I think from J Scott) that it's a good idea to add 1 "flair" item. Maybe granite, or wood floors in the dining.. etc. Did you overkill the upgrades on this one to move it so fast, or are all those upgrades fairly standard for that area?
adam, good questions....i planned to list at 95-99 the whole time...my rehab came in so under budget, and i have never flipped a house during the winter....i didn't want to wait until spring to get paid, so i figured i'd rather list at 89 and take it now...i got a strong offer with 20% down, but it was pretty low...i told him 81 was the lowest i'd go..i always pretend that there may only be one buyer looking at that time...i want to turn nobody away, and make sure that the one buyer will buy my home over anything else in the area...i got a great deal on this property, and while i could've held out for more money, i'm happy with my profit, and more importantly, the buyer is happy bc he knows he got a great deal...that doesn't bother me at all..if i waited til april or may, i prob could've sold for 95ish, but now i have money to reinvest into 2 flips, that will both be on the market around early summer...
as for your question on upgrades, i think this is pretty much on par for the neighborhood....this area is very trendy.i've learned how to do inexpensive things that look like upgrades...for example..it's a small house, with a small livingroom...prewiring for a flatscreen TV isn't hard or expensive, but it's a nice touch for an oler 60's home that most don't expect...it cost very little...the tiles on the kitchen floor are mostly the .67/ft tile from depot...by adding in a border and setting the middle tiles on the diagonal, it makes it look custom and expensive, but the materials were not bad at all...same with the backsplash, which was a great deal..also, this house faced the back of a grocery store...that didnt' seem to bother most people, and i'm thinking it was bc the inside and backyard looked so good..sometimes, it's worth it to spend a few extra on things to make them forget about the flaws...hope that helps
Bryan,
Fantastic job. Would you mind sending me the address. I would love to go by and see it in person. I know I can't go in but at least I can admire from a distance :)
I used to avoid small homes, but now I gotta say that with the way the economy is going, There are a lot of folks looking for small homes with small utility bills. Good luck! :D
I used to avoid small homes, but now I gotta say that with the way the economy is going, There are a lot of folks looking for small homes with small utility bills. Good luck! :D
jon is absolutely correct...if there is a demand for smaller homes, these rehabs are painless for the most part..much quicker and cheaper...to put it in perspective, for this small kitchen, granite was only 700 bucks more than laminate...for 700 bucks, why would you not install granite?
Think you knew I was watching from a distance as I had been talking to Alex. I've got the home about 3 doors to the left in the mint green color -it's one of my rentals.
Anyway, you did a fantastic job in turning the property.
hey tyler, thanks for the compliments...yes, i know your house..i love the windows you went with on that one...the 14 unit is rehabbed and 9 units are rented so far..we just started a rehab in windsor park, and i'm trying to get one going in NoDa and another in midwood...let me know if you're interested in seeing any of them or having lunch again.
Definitely up for grabbing lunch. Windsor Park has been a good steady eddy rehab-to-retail market. I'm involved over there from the lending side. NoDa -can't say enough. Just got a house where I'm splitting off a lot. I've lost your number -do you still have mine. Let me know what your schedule is like.
Flip looks great. I agree with your idea ofngranite in lower price points. I plan to listbat $99. I want to add granit, others think it to over the top. I am think what housesat $99 k will have granit, if I am the only one maybe that will lower my days on market.
jason, i have my sticking points, as i'm sure most rehabbers do..my big pet peeves are old windows and formica countertops...crazy i know, but every rehab i do has new windows and granite..my painters are my main crew...they also do my framing, roofing, drywall hanging and finishing, etc. i use them for just about everything minus the electical, plumbing, and HVAC permits...that, i sub out
Great job Bryan, Look forward to your next set of before and after pictures. I envy your early start in RE investing. It also looks like you have developed the skills to find deals, understand what the rehab costs will be and are able to find buyers when it is all said and done.
I do believe that any newbie would learn a lot from your example.
Congrats Bryan. Looks terrific. I kind of have a system,at least with respect to paint colors, granite, cabinets, appliances, etc. A couple years ago we had a rash of newer appliances on CL as people were bailing left and right.
Question for you and others; do you bid out your jobs or stick with the same contractor? My painter can do just about anything. In the past, I've found I need to get a new contractor every few years. Prices seem to increase and quality decrease. I think I've got a good guy now, but do you come back at your guy with other bids? I just negotiate down for now.