We are in major planning mode right now for our Drummond flip house!
When flipping a house, the work starts the day your offer is accepted and the purchase agreement is signed. It generally takes 30-45 days for a property to close with conventional financing and you want to have as much of the renovation planned as possible within that time. There is always a chance that the deal could fall through and your planning could be for nothing, but it is better to get a head start and have contractors scheduled for the day you receive the keys to the house.
I am looking forward to sharing this entire experience with you, including the steps I take to flip a house from start to finish. So lets back up really quickly and I will tell you what we knew after our first walk-through of the home:
The property had good bones and there was a lot of potential to turn it into something beautiful that many future homeowners would find appealing
We came up with rough estimates for the repairs we wanted to make and analyzed the numbers to ensure we had a good likelihood of hitting our profit margin once we sold the property
We analyzed the market - determining the average cost per square foot of the houses neighborhood that are in good condition
We had a general idea of the timeline for this project - heading into the winter, we planned on fixing it up through the winter and selling it early spring
The first thing I do is when planning for a flip is create a spreadsheet with every project we want to complete on the house and begin pricing it out one by one. This include materials and labor. You will be surprised how quickly the cost adds up and you have to start making decisions on what projects are absolutely necessary and which ones are not. Flipping houses can be cut throat and not all projects are created equal. ;)
How beautiful is sketch of the house? This was our first dream for this home, but unfortunately we had to take out the dormer and nix closing in the screened in porch due to cost. But that is ok! This house is going to be so awesome, even without those really nice upgrades. BTW, this sketch is a Jeff Unverferth original, he is the best!
A few ways to help lower your costs is to cut out the projects that are not absolutely necessary, like a built-in locker system for the mudroom. Another option is to substitute the project for a less expensive option, like adding hooks to the wall and staging with a long bench to mimic a built in locker system. This is one alternative we chose when going through our original plans for the house. You can also see what projects you can take on yourself to save money on labor.
It can be easy to get overwhelmed but I find that listing out everything in a spreadsheet really helps me to stay focused and follow the schedule.
We closed on November 5th and here is what we have already lined up for the first week of possession.
New roof & gutters
Scraping and painting the trim where the gutters will be placed (completed by yours truly)
Move & install new furnace - the current furnace is in a crawl space under the house and we are moving it into a closet under the stairs
Remove 5 trees from the backyard
Clean out flower beds
Home Depot kitchen installer coming to get accurate measurements of the kitchen for our design
These are examples of projects that are MUST HAVES. Potential buyers need a functioning (and easily accessible) furnace and a brand new roof is a big selling feature for any property.
Plans are underway for the interior of the house and I am excited to create a functional living space for modern families. My goal is for potential buyers to walk into the house and be wowed by the design and not even realize it was a flip house based on the custom look and feel of he home.
I love the Scandinavian design trend right now and am looking to emulate the feel in this space. This will include natural elements throughout the space - Dark woods, earth-toned accents like hunter green, black, white, deep blue, and then accents of brass and gold to modernize the house.
Stay tuned for a full tour of the house before demolition begins later this week!