All Forum Posts by: Andy Sabisch

A 50/50 split seems the right thing to but remember, everything is negotiable.  Whatever percentages you come up with, make sure all parties are good with the split because if there is any question - even in the back of one's mind - it taints future projects.

We have used Samsung in recent projects - kitchen and laundry room.  Watch for sales at Lowe's and Home Depot and you can get sets for savings.  Sign up for credit cards and save 10% on top of that.

Unfortunately sealing the cheaper laminate flooring will not be an option.  While it is not what you want to do as far as ripping existing new flooring and replacing it, how much are you talking if you set aside an area for the dog to camp out?  We had hardwood in most of our previous house but had the kitchen and family room done with wood looking tile and the 4 little guys stayed there until bedtime.  Avoided accidents and did not require tearing the hardwood out

Odd first post . . . . are you looking for buyers?  Some of us buy local and others buy remotely . . . . we buy in NE PA.

As Randall said, any input you get from BP members is a rough estimate at best and that is using numbers we have seen in our area using the people we use which will be different from your area and your trades people.  Some of your line items are off (no drywall material cost, kitchen costs, etc.).  Also having a spreadsheet without additional details is really coming up with a wild guess.  We are working on a property now that has much more detail and we still add lines as we find things.

Your local REIG should be able to provide some references but in the meantime, get some hard quotes and make sure you are comparing apples to apples; i.e., licensed, insured, permits, etc.  If this is one of more to come, let them know that there can be more business to follow based on how this project works out.

Good luck!

If the ARV is accurate and is $400,000, I would need to know what the sq ft is to get an idea of what the reno would cost.  For a cosmetic only (assuming that is all it was), I would budget about $30 / ft2.  So Deduct that from the ARV and I would want to be in a position that as a buyer to flip, there was at least $40K to $50K on the bone with the reno, contingency and wholesale fee.

First, congratulations on the project . . . . best of luck!

Second, not sure what your market calls for but we have seen the totally open concept fading in lieu of the desire to have privacy for a home office (holding meetings, etc.), doing homework, etc.  In fact we have seen flips that flew off the market where an open concept was modified to provide office area / space.  With that, the layout / flow looks workable as is so at least in our market, we would not be tearing walls down.

With that, think about swapping the DR and LR so the DR which flows better, move the door from the garage so it opens into the kitchen which gives you a straight wall in the new LR, shorted the wall where the HW heater is (I think that is what is in the area between the current kitchen and LR) or possibly move it entirely (not sure if you are on a slab and can move water lines) and look at moving the fire place to the new LR area.  Obviously new fixtures, cabinets, flooring and lighting is a must as is removing the popcorn ceiling if you can.

We always start with a concept and walking the actual property, it tends to speak to us and we can and often do make changes.  We are doing one now that we have tweaked three or four times since we closed on it 2.5 weeks ago.  If you know what the area you are in calls for (hit open houses and look at online listings for finishes and layouts), you will see what you should do for maximum return,

Hope this helps

Several questions on your post . . . . you said listed, is it on market or with a wholesaler exclusively?  If it is listed, why are you going through a wholesaler?

Assuming it is with a wholesaler and not on MLS, what is the ARV of the property in the area it is located in?  Do NOT rely on the wholesaler to give you that information as they will typically inflate the ARV and under estimate the reno costs.  If you are confident about the ARV, use that as a max value and ideally take some off for the "fudge factor".  

You said the property has no major problems - is that based on your inspection or again, from the wholesaler.  The big ticket items (electrical, plumbing, HVAC and roof need to be looked at and if anything is needed, budgeted for in the offer.

For us to give you estimates on offers and reno costs, you need to post the size of the home, age of the home, anything unusual in terms of a pool, gardens, basement, etc.They all factor into estimates to reno the property and this is definitely where you do NOT take the word of the wholesaler as they want to make the deal look as good as possible.

What state are in you?  Are you looking for a contract to buy a property, sell a property of am agreement with contractors?

Fire damage throws a wrinkle into any deal.  There are those that do these type of homes on a regular basis and know how to either encapsulate the remaining wood to ensure the smoke smell does not come back or replace to eliminate the issue.  The costs are higher than a straight reno so be sure you have either checked with those that do it locally or budget accordingly.

You reno estimate is based on what?  Just the fire repairs or are there other updates you will be doing to the property?  With the fire damage, the estimate seems low for the full reno.

I quess the market is still hot for you to offer over ask for a fire damaged property? Is it on or off market? How long has it been for sale? Has the HML validated the ARV?

Before pulling the trigger, double check your ARV (be conservative) and reno costs (be through) and add a contingency. There is money to be made on any property but as a mentor of mine said, every property has a price - for some that might be $0 but again, every property has a price that makes sense.