All Forum Posts by: Andrew K.

Do flippers on here try and avoid houses that would benefit from additions to get maximum profit? I'm a contractor, so I understand all the costs and time that adds to the project, but I was just curious what people's take on them were as a strategy for a flip.

I live in the DC metro area and with the high price of housing inventory and overall steady home sales, I've found the competition to be very high for desirable properties. Many times I see people actually overpaying for properties that actually hit the MLS. Even off market properties have sellers who can demand a premium.

I know speed is generally the name of the game in flipping, and additions will increase your construction/holding time, but are there any pro/con feelings one way or another?

My thought is being able to add value through an addition (either master suite addition, bumpout for bigger kitchen, raising the roof, etc.) would allow me to potentially pay a little closer to "market value" on the house under the guise of adding much more value (not only in desirability of the end product to a buyer but profits as well) to match larger property comps.

Again, I know it ultimately comes down to the numbers in any project and each is unique. I was just curious to hear if most people say no way to additions in general on flips or whether they don't mind taking them on.

@David Jacques

Interesting. Thanks for putting this together. Have you ever done this for tear downs? Would be interested to see the differences in costs.

Also, any experience building in Montgomery County?

I'm a GC as well. Transitioning into the development and flipping world.

Devonte' Dinkins responding to your question on how expensive it would be to do repairs the quick answer is: it depends on each property. Sounds like in your situation you'll probably want to find something a little more turn-key so you don't have to tackle too many repairs or upgrades. Best of luck!

Welcome@Bobby Akines !

I'm just getting into investing as well in the DC area with a GC background and have formed a boutique development company to start doing condo conversions and rehabs etc.

Best of luck....this site is a great resource to learn and connect with like minded people

Best,

Andrew

Hey Marc,

As a fellow Bethesda resident, welcome to the site! This is definitely a great place to learn!

I attended for the first time this past week, and just wanted to give a short testimonial that this was a really great event. The guest speaker was highly informative and I already made a number of good contacts. I'm looking forward to attending more in the near future!

@JScott

That seems bizarre that they won't underwrite a policy for you. I am no insurance expert but my guess is they're getting too caught up on things being between "two industries". They like it when you are specifically this and do specifically that. I haven't found too many who have been willing to think outside the box. If you just say you're a GC period, they won't blink an eye.

To my knowledge in Maryland if you are considered a developer you do not need to get a GC license since you are not the one performing the work. Now, I am assuming you're getting a MHIC license because you want to hire independent subs for different trades/ would hire someone in house (or yourself) to manage the project instead of just hiring a singular GC? If this is the case, why don't you form a GC company (separate from Lish) and have that insured? Erie provides a very simple contractor policy (as do most other providers). This is essentially where you're heading by getting a contractor's license to begin with.

I am a contractor currently, and my plan as I get into the real estate side of things is to hire my GC company to do work on the properties my development company will be developing or flipping. That way I keep control of costs/work, but am covered both ways.

Don't know if that helps at all, but thought I'd weigh in. Is this different from what you did in Atlanta? How were you able to manage projects there without a GC license?

Looking for some good wholesalers in the Washington, DC area to help find some good rehab properties (single family, townhomes, multi families) in the area. I'm a direct end buyer. Let me know what you've got!

@Will K new to the investing arena in the DC area as well. Would love to be included in any meetup activities. Let me know if you would like help organizing as well. Looking forward to connecting with other local investors