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Old 08-01-2007, 11:32 AM   #1
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House Gut and flip....


There is a house I have my eye on. It is a 20 year old colonial style. 4bed, 2 bath 2 car garage (2000 sq ft)

It has vinyl siding but needs to be gutted and new window's put in.

There was a house inspection done and all came out fine but it is just a MESS inside and has broken sheetrock, torn carpet, etc.... In addition, it needs new mechanical's (HVAC, Water Heater).

I have done this type of work on my own house but the stuff I put in my own is of better quality then what I would put in this house (ie: replacement window's vs. new anderson, granite counter's vs. formica, etc...). I still want to make it "nice", just not high end.

Anyone have any thought's on a cost for this? I am thinking $30 to $40k. from gut to finish doing some of the work myself but most with contractor's I know and have used in the past.

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Old 08-01-2007, 12:21 PM   #2
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House Gut and flip....


It would be closer to $90,000 in this area (Central Texas).

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Old 08-03-2007, 02:55 AM   #3
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If you did EVERYTHING yourself, I would think you would be doing great to get it done for 50k.
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Old 08-03-2007, 05:04 AM   #4
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Originally Posted by dcd22 View Post
There is a house I have my eye on. It is a 20 year old colonial style. 4bed, 2 bath 2 car garage (2000 sq ft)

It has vinyl siding but needs to be gutted and new window's put in.

There was a house inspection done and all came out fine but it is just a MESS inside and has broken sheetrock, torn carpet, etc.... In addition, it needs new mechanical's (HVAC, Water Heater).

I have done this type of work on my own house but the stuff I put in my own is of better quality then what I would put in this house (ie: replacement window's vs. new anderson, granite counter's vs. formica, etc...). I still want to make it "nice", just not high end.

Anyone have any thought's on a cost for this? I am thinking $30 to $40k. from gut to finish doing some of the work myself but most with contractor's I know and have used in the past.
Mechanicals (plumbing and heating) alone could easily cost $20K to $25K +, dependant on how much of the system needs to be replaced. Is it Town sewer or septic? If it is septic, that should be checked out real good. A new system can cost you $20K up to $100K or mor dependant on the lot.
New windows, even the cheapies could run you $5K to $10K or more, dependant on the sizes. Doing it yourself: Siding and siding trim could still cost you $10K alone or more, dependant on the trim and details. Don't forget about all the incidentals like: dumpster fees, yard clean up, staging rental, tyvek, foam board, replacement of exterior areas, additional painting of exterior areas, etc.
Look at those numbers and realize that you haven't even started pricing interior expenses and the unforseen issues that come up with EVERY remodeling job.
You could put the home up for sale when all is said and done, and another buyer's Home Inspector may find issues that your H.I. missed. I've seen it happen alot.
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Old 08-03-2007, 09:18 AM   #5
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I just gutted and entire one family home (1600sq ft)., and when you start tearing down you don't know what you are going to find until your done guttering. I thought I could pull this $50,000.00, and I am now at $75,000.00. New roof, new windows, many floor joist had to be change, new electrical, new plumbing, new hard wood floors, new water heater, still need new furnace. So make sure you have that extra cash, for things you think weren't going to be needed All I can say it was a scary moment in the beginning, but now the house is new inside
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Old 08-04-2007, 09:27 AM   #6
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The post is too vague. Take the time to list everything you expect to do to get a rough estimate. Would also help if you told us what jobs you were going to do and those that were going to be subbed out. Where you are from also impacts on labor costs.
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Old 08-06-2007, 01:10 PM   #7
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... realize that you haven't even started pricing interior expenses and the unforseen issues that come up with EVERY remodeling job. ...
Kudos to AWBC ... I experienced the same thing. I thought my reno would be a snap. It's been anything but. I knew what I was getting into in every aspect except what was behind the walls. I'm going to have to jack up the main beam, replace DWV lines, new plumbing, insulate, and drywall. I've already done the roof, windows, doors, and electric. I guess you could say that I'm half way there. Fortunately, I don't have to replace any joists. But when you open up walls, you never know what you're going to find. Studs are not always where they should be, or walls built in a manner that's the safest or most appropriate. Assume that everything in the house is wrong to start, and then you've covered your bases. THEN, assume that nothing will go as planned. It sounds pessimistic, but it happens more often than not.
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Old 08-06-2007, 08:21 PM   #8
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If the home was built in 1987 you should have few concealed construction deficiencies. you my still have pest, water damage, dry rot and deterioration to contend with. Where you are located will make a large difference in determining your associated costs.
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Old 08-06-2007, 08:51 PM   #9
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If you are new at flipping you should NOT start with a house like this. You will lose your Butt.

I could probably look at it and get a good idea of what it will cost to fix it, but I'm in the trade and am usually within a couple thousands of actual cost. (and yes you are talking in the tens of thousands)

but if you are not in the trade a good rule is to figure your best then double it, then see if it is still worth it.

If it is then do it, if it's not walk away with no regrets.
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Old 08-07-2007, 02:19 AM   #10
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There is a house I have my eye on. It is a 20 year old colonial style. 4bed, 2 bath 2 car garage (2000 sq ft)
What's the overall housing market like in your area? If it's hot, and prices are climbing every day, then the next question is, is this a realtor listed house? If so, stay away from it. In a hot market no good flip candidate ever gets to the MLS. The realtors and their buddies snatch them up before they ever hit the listings. The only ones realtors list are either so trashy they'll cost a fortune to fix, and end up being overpriced, or they're too high priced to begin with.

If the market is cold, you have a better chance, but only because, and if, there isn't a feeding frenzy going for flip candidates. Then you really have to be careful about making sure the purchase price + cost of remodel will be less than potential selling price.
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Old 08-07-2007, 02:32 AM   #11
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Adding to my post above, I know. My plan for several years was to retire in 2006 and move back to Idaho, buy a fixer-upper I could live in, fix up and enlarge, and sell in two years and not pay tax on the gain.

In 2004 I spent 3 days checking out the supply of fixer-uppers in SW Idaho. The market was tepid, and I found at least a dozen good prospects. I should have bought one then, but didn't. In 2006 when I was ready to act, the market in SW Idaho had turned hot. I spent 6 months looking for a fixer-upper candidate, and finally gave up. No good candidate ever hit the listings.

I finally opted to build a new house from scratch.
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Old 08-07-2007, 09:26 AM   #12
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House Gut and flip....


Just wanted to add some info for you guys.

We did get an inspection report on the house. It is in "cosmetic disrepair". Meaning, it does not need to be gutted, but more stripped and redone. We WOULD however, gut and redo the bathroom's (2), Kitchen, add nes mechanical's (forced HVAC), water heater, replace the window's and roof over the existing. The front, back slider and garage door's (2) also would be replaced. The landscape would also need to be cleaned up and add some curb appeal.

There are no structural issue's.

The market right now is cool. We have looked at comp's in the area and have sold recentely for $375+. We were thinking we could list and get $375 easy.
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Old 08-07-2007, 11:05 AM   #13
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We did get an inspection report on the house. It is in "cosmetic disrepair". Meaning, it does not need to be gutted, but more stripped and redone. We WOULD however, gut and redo the bathroom's (2), Kitchen, add nes mechanical's (forced HVAC), water heater, replace the window's and roof over the existing. The front, back slider and garage door's (2) also would be replaced.
You have a disconnect here, I think. If an inspection report states "cosmetic disrepair" that means they consider the core essentials to be OK. That will be reflected in the price. Cosmetic repairs are the least expensive to fix. What you are proposing to change out or update are the most expensive parts of the house. What you potentially are getting into is paying first for an OK kitchen, bath, and mechanical systems, and then paying again to replace them. You won't be able to pass on that kind of a double charge to a future buyer. Just my opinion. How much of the $375k for comps reflects high land prices and/or premium interior amenities? If lots are worth $100k, and the kitchens all have granite counter tops, tile floors, and top of the line cabinets, and the asking price is, say, $275, you won't have much room to make a profit.

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