Tuesday, February 23, 2016

How To Flip A Property: Status Update Week 3 Article 5

In case you missed the first articles on how to flip a property.

We've been hard at it the past couple weeks...

Our initial timeline was 2 weeks to have everything completed, but when you are doing a majority of the work yourself it's important to be prepared for the unexpected!  Since our delay is due to work related matters, we gave ourselves a pass on the delay!

That said, time IS money!  Any further delays means our property will not be ready to rent until the first week of March, which is less than ideal because of the carrying costs: taxes, insurance, HOA dues, mortgage, etc.

Here is a quick status update

  • flooring is being removed for new
  • even the sub-floor by removing loose edges and re-screwing squeaky/raised areas (never nail)
  • remove builder grade formica in both bathrooms and kitchen
  • remove kitchen and bathroom(s) sinks and faucets
  • patch holes in wall and re-spray texture for seamless look
  • repair loose and cracked ceiling drywall joints
  • re-texture ceiling repair

This shows the subfloor after removing the carpeting.  It's important to make this area as level as possible prior to wood flooring installation, otherwise you'll have lumps and humps causing un-evenness throughout.  We took a scraper and removed rough edges then re-screwed some of the OSB.  The black rubber pieces shown here are transitions from one flooring surface to another.

Installing the underlayment (used for floating floors) for the new flooring after the OSB has been leveled.

Kitchen counters without formica and sink.

Master bath vanities without formica counters and sinks.

Main bathroom without counter and sink.  You can also see from this photo where I began "cutting in" (painting) with the new color.

Questions about flipping?  I'm always available!

Monday, February 1, 2016

How To Flip A Property: Our Property

In case you missed the first 3 articles on how to flip a property.

Search Objectives

  • Purchase price at or below $150,000
  • At least 2 bedrooms
  • 2 bathrooms minimum
  • Minimum of 1,000 sq. ft. under air
  • Condo-Villa-Townhome (our budget did not allow single family homes as an option)
  • Lake Nona area of Orlando
  • Low HOA
  • Must have upward pricing potential to flip
  • The Cap. Rate must be 10% or above to hold
  • $10,000 set aside for repairs, improvements and upgrades

Property purchased

  • $129,900
  • 1,300+ under air
  • 2 bedrooms
  • 2 baths
  • Villa
  • 1 car garage
  • Lake Nona area
  • Sales price will be upper $160's after upgrades
  • 11.45% Cap. Rate if we decide to hold instead of flip
  • Rents will average $1,375 to $1,425 after upgrades
  • REO (bank owned)
  • Costs of upgrade $6,500

You can see the property is not in horrible condition for being bank owned.  We began filling holes in the walls and prepping for the project.  Everything works, including the stainless appliances (excluding the broken handle on microwave) washer/dryer, HVAC system and garage door opener.

If you have questions about this project, you can reach me by email, text or cell anytime.