Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
This was a project I did with an out of town investor, the house is in Jacksonville, Florida and he lives on the west coast. Originally he was reluctant to buy the house. It was under contract 2x. He almost talked himself out of it. But after all, he made a great decision and it was amazingly profitable.
Numbers:
80k Purchase – cash
35k – Reno
Roof, siding, paint inside and out
Kitchen cabinets and countertop resurfaced
Plank floor
New tile in bathroom
Repair electric and plumbing
Home staging 1% of sale price
6 month project
165k sale price less 6k closing costs
44k Profit
Regrettably, this will probably be the most profitable flip I am involved with for the foreseeable future. It all lined up perfectly.
I love home staging. The company I use is top notch and it makes all the difference in trying to sell the house. Buyers often have trouble picturing what it will look like with furniture.
This estimate does not consider any cost associated with building permits or design professionals. There is no money for demolition or mold remediation. There is no money for any foundation repair or drainage improvements. There is no money in my WAG for new doors or door hardware. There are no dollars assigned to new HVAC equipment or a water heater. No allowance for stair (treads and risers) or handrail rehabilitation. No allowance for insulation or other thermal improvements - such as upgraded windows. No money dedicated to moving or eliminating interior walls. No allowance for garage door replacement. No allowance for new landscape, privacy fencing or flatwork rehabilitation.
I could not have accomplished the level of renovation you show for the dollars expended. Am I missing something or do you get REALLY good rehab pricing in your area?
This estimate does not consider any cost associated with building permits or design professionals. There is no money for demolition or mold remediation. There is no money for any foundation repair or drainage improvements. There is no money in my WAG for new doors or door hardware. There are no dollars assigned to new HVAC equipment or a water heater. No allowance for stair (treads and risers) or handrail rehabilitation. No allowance for insulation or other thermal improvements - such as upgraded windows. No money dedicated to moving or eliminating interior walls. No allowance for garage door replacement. No allowance for new landscape, privacy fencing or flatwork rehabilitation.
I could not have accomplished the level of renovation you show for the dollars expended. Am I missing something or do you get REALLY good rehab pricing in your area?
Benjamin, your estimates seem like par for the course for cold-called quotes, but they are high for what experienced rehabbers should be able to negotiate with subs they use repeatedly. Maybe in some parts of the country, NYC, LA, Denver, etc, those are reasonable prices. If a local sub quoted me any of those prices, I'd call someone else.
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
8y
Pricing break down. This is not the entire list and all of the expenses, but it is a good guideline to the costs. Some of the materials are in the costs. Keep in mind Jacksonville is a different scale of magnitude than other cities.
Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
8y
@Lesley Resnick
Thanks for posting details on some of the rehab costs .
Does the 35k include the project management costs as well?
I’m assuming also 6 percent or so of sales price for commission ?
Jacksonville, FL · Member since 2015 · 14 posts · 2 votes
7y
@Lesley Resnick That rehab turned out amazing, great job! Can you provide the staging company you use? How long will they keep it staged?
I just went under contract on a flip in Mandarin that has some unique layout features, need some opinions on what and how to renovate, do you have any interior designers you use or recommend?
Jacksonville, FL · Member since 2016 · 17 posts · 3 votes
7y
@Lesley Resnick
Thank you for sharing your numbers, the house turned out great! My husband Andre and I finished a flip in Murry Hill Gardens a few months ago and haven’t been able to find another flip as good either. We purchased for 44k Rehab ~50k and sold $164K. The market just keep going up.
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Murray hill is a great spot. I have been doing a lot out there. You cleared 50k+ on that house. My hats off to you. I agree the market is moving up.
Originally posted by @Jessica Mendez: @Lesley Resnick
Thank you for sharing your numbers, the house turned out great! My husband Andre and I finished a flip in Murry Hill Gardens a few months ago and haven’t been able to find another flip as good either. We purchased for 44k Rehab ~50k and sold $164K. The market just keep going up.
@Lesley Resnick That rehab turned out amazing, great job! Can you provide the staging company you use? How long will they keep it staged?
I just went under contract on a flip in Mandarin that has some unique layout features, need some opinions on what and how to renovate, do you have any interior designers you use or recommend?