Flipped Homes
Cripple Creek AKA “The Flood House”
Our first Fix and Flip in the Fayetteville, North Carolina area was purchased off the MLS and. The home had extensive damage caused by Hurricane Matthew in 2016. As you can see from the before and after pictures, we brought the property up to date with a modern design and quality materials. The biggest struggle when entering a new market is finding good reliable contractors that understood that quality of work we demand in our flips. Even after a few bad apples; we eventually found our go to General Contractor. The rehab cost would have been a lot higher, if we did not get in there and do some of the work ourselves! Bootstrapping is great when you are starting out, so that you can have knowledge of what it takes to rehab a property. If you are looking to grow and make this a true business you must work on the business and not in the business.
Quick Break Down:
Time line from purchase to resale: 17 Oct 2018 – 05 Mar 2019
Purchase price at closing: $34,868.83
Rehab cost and holding cost: $51,000
Sale Price: $97,000
Profit after all closing cost: $2,060.66
Although the property was not a large money maker, in the ended we gained valuable experiences with the codes and regulation in the area, who we could rely on and who we could not. So, it is a win in our book! Flipping homes is not as seen on TV, it is a “full contact sport”.
Before
After
Coventry AKA “DIYer”
This property was another victim of 2016 hurricane, which was also found on the MLS. This property had been in some state of repair for 2 years since the owner bought it with the hopes of flipping it himself. The asking price was $30,000 on the MLS, but after our inspections and very precise negotiating we were able to buy the home for $15,596.00. Yes, you are reading that closing price correctly! This flip looked like it would be a home run for sure! But just like in life there were a few unexpected bumps along the way. We had worked out the contractor issue for the most part, but there was an issue with the HVAC company my GC went with. They were late by more than 3 weeks getting the new HVAC system installed, after that we found more issues with their quality of work. Which we of course fixed because we were not going to put a band aid on the problem.
My wife again did what she does best, and that is make this rehab a Show Stopper! We could have cut corners in the design, but that is not what we are about. With every showing the feed backs were all the same; comments after comments about the kitchen and baths! The little details from the built-in shelving in the living room/den area and the use of a butcher block island counter made buyers willing to pay our asking price! Original buyers hesitated when the report of a little section on the property that was in “flood zone”. According to FEMA none of the property was in a flood zone, but the state insurance powers that be made a small section part of a 100 year flood plain. So that made one buyers pull out, even after the survey paper work was shared with them. Again, another valuable lesson learned here in our local market.
Quick Break Down:
Time line from purchase to resale: 01 April 2019 – 01 September 2019
Purchase price at closing: $15,596
Rehab cost and holding cost: $48,812.77
Sale Price: $109,000
Profit after all closing cost: $32,355.95
Before
After
Kennesaw AKA “The Squatter House”
This was the first property we found off market! Finding this deal showed us the advantage of finding off market deals compared to finding properties on the MLS. This property was left to sit and caused problems for the neighbors. I will say that the squatters were nice enough to contain most of their mess into two rooms. This property was our first attempt at “Get In The Reps” while maintaining our standard of quality, but not to over improve for the neighborhood. This opportunity to rehab a property with a BRRR’s strategy in mind, good practice for future properties. This was a success for us, we were able to get this knocked out with those goals in mind and still sell it for top dollar on the MLS.
We would not be transparent if we did not disclose, we had to get the roof done twice. With all our projects we always pull two inspections reports. One before we purchase the property and one before all contracts are done. During the inspection it was found that the roofers did not do their job as stellar as they proclaimed. This would not had happened if our GC did not have to leave for a family emergency right before we purchased the property. So, we had to go with another untested contractor and his crew. Needless to say, we were able to recoup some cost because of our Company Contracts we had all contractors sign before starting work. This is another paramount detail in the whole process. This lays out specific expectations, quality of work, and time for completion of work for all contractors, so they knew what to expect from us as much as what was expected from them.
My wife’s decorative touches were still seen all throughout the flip. Even though we were trying to keep cost down to exercise future projects for turn key buy and hold projects in the future. She was able to incorporate nice upgrades in the home, giving it that high end feel with a smaller budget due to increases in other areas of the rehab (tree removal and roof replacement twice) and still hit it out of the park! Her choice to use that bold blue color had me a bit nervous, but it was a huge hit with the neighbors and buyers when it hit the MLS!
Quick Break Down:
Time line from purchase to resale: 12 July 2019 – 20 November 2019
Purchase price at closing: $31,523.37
Rehab cost and holding cost: $56,128.34
Sale Price: $121,900
Profit after all closing cost: $34,248.29
Before
After
Laguna AKA “Up Hill Duplex”
This property was also found off market. We were not able to buy the duplex as a whole since both sides were owned by different people. So, we had to settle for just buying one side, but that was fine with us. This gave us another opportunity to “Get In The Reps” to execute a rehab of a property that could be a turn key investment property for future clients one day. This was my first attempt to market this project from start to finish to local investors, of course they wanted the property at a lower price, but I knew what it was going to be worth when it was all said and done. After the rehab, it was actually bought by another investor off the MLS.
We went into the rehab to take care of all CAPEX items and to give the property a nice face lift. Our plan worked just as we wanted; the strategically upgraded items and repairs done in the property paid off. The profit spread was not as big, but if we would have kept this property as our own, we were in the money all day long! This was just another project that we proved the proof of concept method! From acquisition, rehab and design that was done great of course there is always room for improvement since we are never going to sit on our past success.
Quick Break Down:
Time line from purchase to resale: 09 September 2019 – 01 February 2020
Purchase price at closing: $24,981.71
Rehab cost and holding cost: $33,910.72
Sale Price: $75,000
Profit after all closing cost: $8,964.73
Before
After
Ashton AKA “The Brady Bunch House”
Another off-market property, this neighborhood had many properties being rehabbed and flipped. The property was going to be our biggest and most difficult flip in this market. The property was a tri level 2000 sqft home, had been owned by one family, and had many owner DIY disasters throughout the years. We planned on the project being our most dramatic change to date! My wife again knocked it out of the park with her design and color scheme for the property. This property was originally 3 bedrooms and 1.5 baths; we planned on making it into a 4 bedroom 2.5 bath home. We converted the “home office” and laundry room into the master with its own bathroom and huge walk in closet. This of course sent our plumbing budget well over projections because of the addition of the waste station needed for the master bath. But this cost was worth it in the end, allowing us to transform unusable square footage into true livable space! This property also had 21 total windows that needed to be replaced, and required the kitchen to be updated to showroom standard! As you can see in the pictures, we ensured that the next home owner was going to get a high-quality home, that we made sure everything from top to bottom was brand new or rehauled. This is something that we have always have done and will continue to do, we truly believe that giving the best product to the next home owner is something we will not cut corners on. Yes, we may lose some projected profits, but our quality of work, community improvement and brand name is what matters to us first and foremost.
Quick Break Down:
Time line from purchase to resale: 19 August 2019 – 30 April 2020 (started project 15 NOV 2019)
Purchase price at closing: $36,879.42
Rehab cost and holding cost: $68,473.31
Sale Price: $148,000
Profit after all closing cost: $32,105.16
Before
After
