I’m Flipping A House
I’m very excited to let you know that I’m flipping a house! After many years of being interested in it, I’m finally doing it.
I’ve always wanted to know exactly what goes into the whole thing and no better way to know about it, than to do it.
Knowing how to run businesses and projects like this helps me be a better advisor. Money is about so much more than your savings account, it’s the WHOLE thing.
I also have a few fun projects I’m working on with others. I’m helping one client turn his home into an Airbnb. I’m helping another build a shop behind his house.
I love how the financial climate changes to give people these opportunities to live the life of their dreams. And THAT’S why I love my job, to help people achieve it!
Most people thought I’d be hard-pressed to find a house to flip since the market is so saturated here. I kept the faith that some family would want to sell fast and that’s exactly what happened!
My realtor and I looked at this house a day before it went on the market. I offered them $10k over their asking price if they wouldn’t put the house on the market, and I’d clean the rest of the stuff out.
Every part of the house needs to be touched – the garage floor is a mess, the basement leaks (but isn’t irrepairable) and it smells – the perfect flip.
As you can see from the pictures, it wasn’t packed full of stuff, but it’s a big project.
I’m hiring all of the work done myself (I’m not hiring a general contractor).
Every room needs updating. There’s a new roof, but other than that, not much has been touched.
Everyone loves to comment on the scalloped toilet seat. It’s staying. That and the linoleum floor. (I’m kidding)
I’m going to save the headaches I’ve already run into for another post, but here are the financial details.
Purchase Price: $190k
Closing Costs: $1650
Realtor + Finance Fees: $30k
Selling Price: $399-$425k
To come up with the price of the upgrades, I found a few blogs by flippers and used their spreadsheets. The initial home inspection prior to buying the house also provided some good starting points.
I have to stress that this house is in a great neighborhood that can handle having almost $100k put into it. Most of the neighborhoods I looked into couldn’t handle more than $15k-$25k in upgrades. They would’ve been highest priced house in the neighborhood. $15k-$25k doesn’t get you far when you’re updating a house.
While this project is rather large, I’m very excited to create something new. It’s something I don’t feel like I’ve done in awhile. Please let me know if there are any parts you’re particularly interested in, I’ll write about them next time.