Today I am sharing the four steps you need to take once you get your flip house under contract.
There is a lot of work that goes into flipping a house and it starts right after the offer is accepted. 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.
First Thoughts on Flip 4
- Property had good bones and hidden potential that buyers would really like
- Estimate repairs needed and complete initial analysis to determine profit goals
- Market analysis – cost per square foot of the neighborhood
- Determine project timeline – heading into the winter, we planned on fixing it up through the winter and selling it early spring
Step 1: List Renovations
The first thing I do is when planning for a flip is create a spreadsheet with every project we want to complete. Then I begin pricing each project out with materials and labor. You will be surprised how quickly the cost adds up! I have to start cutting projects that are not absolutely necessary. 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 vision for this home. 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!
Step 2: Evaluate Budget & Eliminate Projects
Begin cutting costs by eliminating unnecessary projects. For example, a built-in locker system for the mudroom. You can also substitute the project for a less expensive option. Instead of a locker system, add hooks to the wall and a long bench instead. 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.
We closed on November 5th and here is what we have already lined up for the first week of possession.
Step 3: Schedule “must have” Renovations
- 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.
Step 4: Plan Interior Renovations
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. I don’t want them to know 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!