SO Im super embarrassed to even be here posting but I really need the help and advice. I bought a 3bdrm 1 bath raised ranch in july 2017 for 42k, I structured 25k for rehab and wanted to sell by september/octobet of 2017. ARV $125K-$130K
Now its march 2 2018 and Im afraid to even enter the house. the intent was to turn this house into a nice 4bdrm with dining room (from some 3 season room they had. My counter part who started out all fired up and seemed to be doing okay, over paid I think for certain jobs, like $45hr to reframe, he and his buddy painted (not complete) for $15hr, had the whole house sided instead of using what was there and the crew took us all summer. I paid a guy $1000 to remove trees and clean up the yard. replaced a sump pump (no receipt even after asking over and over.) Bought appliances for $1500 but the kitchen sits unfinished, the bathroom is gutted, a back room was cleaned up to make more living space but won't work well unless its insulated from the underside and its now yucky winter and Ill pay through the nose to have someone go under there. Ive said this house needs a second bath right from the start and have gotten nowhere(even the realtor said it needed one), the biggest problem I see in this scenario is that I really wanted and needed someone who has done many of these with the mindset of the investor/REIA to walk me through, not my dear hubby who although very talented in what he is capable of doing isn't very good at organization, timeliness, of follow through, therefore he has now quit on me and Im stuck trying to learn AND figure this out and not lose my shirt in the process.I had my realtor walk through the job with me and try and help refocus me but I really even need the financial piece played out at this point . Is there anyone who can help me save my first flip.
When it comes to flipping, time is money.
Doing the work on your own actually costs money in the long run. Carrying costs will eat up any potential profits.
Whatever was done already is a sunk cost. The key now is to move forward with a clear action plan.
Start by interviewing 3 contractors. Walk through the property and tell them exactly what you want done and get bids for the work. Make sure they are licensed contractors. Doing unlicensed work will cost you more money when you have to have everything redone. Then add up the numbers and see where you stand towards getting to breakeven.
Maybe skipping the 4 bedroom and then adding the 2nd bathroom would make more sense. Then again, if done correctly, 4/2 still might work.
Then set strict completion dates and make sure they stick them so you can sell as soon as possible.
You can probably get your agent to start marketing the property before the work is complete. This way, potential buyers can make custom requests before things are done.
The other option is to partner up with a seasoned flipper in the area that has a crew and can help you finish the job. But that might be tough to do if there isn't enough profit left in the flip once all the work is complete.
I think your first issue is your 25k scope of work may not have been close to reality.
but it still looks like you have enough room to at least break even.
there are many flippers ( myself included) that sometimes break even is a great win.
flipping is fraught with risk.
Thanks christopher Phillips, that’s great concise info and I like the realtor info as well. I’m just really mad at myself for letting it go this long before I put my foot down because I know time is money and my time in a job may not be in the long run the best action. I can’t let this job define me but learn from it and grow better. Thanks again
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing