We came across our first flip rather quickly. It came in my email, from an automated email from one of our agents, and we quickly contacted our realtor. We knew that a property for $25,000 in our town was a steal.
After contacting our realtor, we were in the property the next morning and we could see why the property was so cheap. The first floor was basically completely gutted. The property had been on the market through the winter and had pipes freeze and burst.
ServPro had come in and gutted the bottom floor to remedy the damage done by the pipes freezing. So, from the pictures above, you can see what we saw when we walked in.
Ironically, it actually comforted me that we could see behind the walls so to speak. In old houses, I always get nervous at what "surprises" may be hiding. Especially in a potential flip property, where uncertain surprises end up costing a lot of money.
We were able to see the electrical, the piping, and the issues with the framing so when we had contractors giving us bids on the job, we should have very little surprises.
We saw the property that morning and had to have offers in the next day by noon. So there was no time for finding contractors and bids. We had to go with our best estimates from our own light renovation experiences.
They were asking $25,000 but we knew that it would be a multiple offer situation, especially since offer submission had a deadline. That was a good indication that it would be a bidding war.
So, with much thought, research and deliberation we made our offer.
Asking Price: $25,000
Our Offer Price: $36, 896
Total Acquisition Price: $38,481 (including closing costs)
Closing Timeline: About 10 Days
Estimated Rehab Costs: approx. $82,000
All In Estimated Cost: $120,000
March 28th Update
So, we are about 12 days into the rehab of our first flip. The crew started on March 16th, with going in and finishing the demo of what was left of the walls and ceilings. Like I mentioned earlier, the first floor had already been demoed from the water damage, so the guys had to rip out the half walls left in the living room and bathroom on the first floor and all of the walls & ceilings on the 2nd floor.
Not only that, but upstairs we are planning to expand the bathroom into the master bedroom in order to make the bathroom a little bigger.
The original footprint of the upstairs bathroom was super tiny; and since it's the only bathroom upstairs, we definitely needed to make it more spacious.
So, we are pushing into the master bedroom, where the tub will actually sit back into the wall, giving extra space for a bigger vanity and toilet. By no means will it make the bathroom huge, but it will make it move usable and spacious.
Now that they have finished with demoing the house, they've jumped into fixing the framing issues with new supports.
We are also opening up the main floor by removing pillars and a few half walls. Now the downstairs will be completely open between the dining and living room and when you walk in the front door you'll see the whole way to the stairs and into the kitchen.
One of the major things we are keeping in the house is the exposed brick for the chimney. It was originally covered with dry wall, but after the water damage they opened it up. Now we will keep it, clean it and it will be the only thing separating the kitchen and the dining room. This original piece from the old house will add some character to the newly updated house.
Now that the new floor supports are in, they are starting to put down the plywood for the new floor.