Two house flipping questions?

Two house flipping questions?

FL · Member since 2016 · 912 posts · 107 votes

For those who have rehabbed a good number of them succesfully...

1. Do you always assume that you're going to be doing a complete renovation? (aside from maybe the roof). I ask because if a house doesn't necessarily need something replaced, for example let's say the cabinets are fairly new, but not brand new. They aren't bad enough so that they absolutely must be replaced, but if you don't replace them, that means your final product won't be as good as it would have been with brand new. Do you follow what I'm saying here? Should I just always assume I'm going to need new floors throughout, new cabinets, countertops, appliances, most or all of the light fixtures replaced, new paint in and out. Why hang on to things that are 80% of the way there when you could make them brand new and they'd be 100%? The only reason would be price and it might actually make more sense to buy things that you know are junk rather than to replace things that are "decent but not perfect."

2. What are your flooring schemes? I'm the type of person who likes to standardize everything. I want to basically do the same thing every time. I have recently been suggested to do 6" x 36" porcelain or ceramic plank flooring ("wood look") throughout the entire house, including all the bathrooms and bedrooms. I'm not personally a fan of carpet anywhere, but it's not about what I like, it's about what will appeal to the most buyers and get the highest price for the house. On my first 2 houses, I bought the cheapest square ceramic tile that looked decent enough from Home Depot or Lowe's. I hired a handyman to put it in for $1/SF and the tile cost about $0.69/SF. I won't be doing that again. I went shopping for flooring companies and found one that will install the "wood look" planks for $4.69/SF including materials and labor. I'm okay with spending more on the floor installation because I know it will be done right and I won't have to babysit a handyman every day.

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  • Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    1.) Yes I leave things that don't need replacing. I have never left cabinets, but have had houses I tried to buy where the intent was to leave the cabinets alone. I have left bathrooms almost 100% as I bought them, left older but functioning hvac items, and usually leave older siding (wood or aluminum). I calculate all of my deals based on the house after viewing it and add/subtract work as it needs to be done.

    2.) My market is no FL, but every house I have done has original hardwoods. I have always refinished them. If I ever got a house without HWs, I would probably go with engineered HW or LVP (wood look). A house with all tile is not something done often in the northeast.

  • Real Estate Investor & Consultant · Los Angeles, CA · Member since 2016 · 620 posts · 386 votes
    7y

    @Patrick Philip 

    1. You should not assume the same type of reno each time. Have a $/sqft in mind for your rehab in order to get a rough estimate. But when you inspect it, your rehab plan should be dictated on what you need to do in order to get it to the target ARV

    2. Some flippers use the same flooring each time, but we use flooring based on budget and the class of the property. Some houses can use engineered wood..some need real/100% wood. 

    If you are doing flips at a large scale, it makes since to try to get economies of scale by using the same materials...but to start, try to create the best product possible for the highest ARV in that respective neighborhood.

    All the best!

    sjw

  • Real Estate Agent · Grand Junction, CO · Member since 2015 · 1k+ posts · 736 votes
    7y

    @Patrick Philip I keep what I can that will not drag down the look. Kitchen cabinets? Light sanding and resealing, new hardware, almost always new countertops. I will also paint cabinetry to give it an updated look. I have paid a craftsman to build one drawer when the remaining were in solid shape. I have spray painted ugly metal windows or sliding doors with a quality white paint. I have also sprayed light fixtures. Doors are cheap and I will usually replace buidler grade slab doors and beat up knobs with a two panel or six panel. I am relatively tall and hate those bath vanities that only thigh height. Depending on the cabinet style I will either replace the whole thing or put a new countertop on it and then a vessel sink on top of that to raise it. Flooring? Tile not so much in cold Colorado. Of course I would refinish hardwoods any time I can; but I am now using a vinyl plank product that looks like wood. $1.19 (plus glue) per sq ft for product and $1.50 per sq ft for install. Appliances? They have to match. If you have one piece that is in good shape then match new ones to it. Otherwise replace all. Don't forget to look at mechanicals - they aren't sexy but a new hwh or furnace is a selling point. 

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