How to Flip a House

This house is disgusting. And it's probably going to take four of these at about 2,000 bucks and a group of four teenagers, another 2,000 bucks to totally wipe out all this trash. And then we'll have a clean slate start. Inheriting a house can be super stressful, especially if you didn't realize that family member was living in this disarray. So this particular family, I didn't know that mom was living this way. And what's scary is I'm in the master bathroom and she lived here. I don't know where the shower, where they went to the bathroom. And it can be definitely an emotional thing. So sometimes when people call me on these things, it's really about helping solve the problem with ease and certainty. And so in this case, the daughter and the son and the mom, they came in, they just took what was absolutely necessary that she wanted, and their permission was to leave everything else they didn't need. And it really was just a time in her life where I think her husband passed. And then things just got away little by little. And this is what was kind of left. The house hasn't been cared for in the last 10, 15 years, and cats haven't been let out, all that other stuff. So don't let this stress you out. There's always a way to solve somebody's problem with certainty and ease and take on that stress for them.

What's it gonna cost?

Well, what's it going to cost?

What's it going to cost? On first glance, I'm saying you're not getting under out of here. Under two. We got three bathrooms. We've got three levels. Good news is the AC unit is good. I'm guessing the roof has never been done. Yeah, it's pretty. It's pretty rough. The windows need to be done. We need to take off the pigeon coop and redo something. I'll probably just because it's super unacceptable to walk in the front door and have nothing but stairs going up and stairs going down. I'll probably have to do something cool with those stairs to make them attractive. I mean, the house has great space. It's just gotta be completely gutted. The good news is that kitchens are kitchens and bathrooms are bathrooms and flooring is flooring. I don't think we need to take it to the studs like you thought. I think for the most part, we're not gonna be making a lot of structural changes. So, you know, all the space that's here is pretty good space. So, I mean, we. We might get it out under two. But the good news is that there's some stuff in here that we're gonna pay a little bit less on the trash out than we normally would, because the people trashing it out are going to go through and kind of pick and choose what they want and be able to sell it. So they're willing to do that and take the time to do it to make a little bit of extra money.

At least the air's on, but the smell is still here. Let's talk about the details on the flips. So this particular house that I'm standing in, we're getting ready to go through it from top to bottom. So what I've learned after almost a thousand flips is to make sure that we do a post inspection after it's done. The guys do a great job. But sometimes things are missed. And when those things are missed and they come up on an inspection report, it causes a lack of confidence from the buyer and the agent because of the little things were missed. What about the big things? The big things? We're talking about things like sewer. You can't see the sewer. I can't tell you how much money we spent on sewers and why that's such a big deal or you didn't make a roof repair. Those are the details that people look at and then they question how good of a job was actually done on this flip. And trust me, we've seen some real nightmares from people that have flipped houses and moved in and had huge problems after all. Right, we're here at the Surrey project. This is a hoarding house. So here's the numbers. We bought it for 135,000. We've spent about $15,000 in holding costs, four months for renovation. We're getting ready to go on the market at 465. We put $182,000 into the property. There should be a net profit of somewhere around $100,000 after all said and done. Now here's the kicker. The market shifted a little bit since we bought the house. So what I thought we were going to get, which was closer to five, we're having to price it competitively in order to compete with the current market with some of the other things. And one of the things you need to know is like, we're one of the nicest houses, if not the nicest house on the market in this neighborhood or this area. And we're also priced below market where everybody else is, so that we can sell it quickly and cut those holding costs out and collect our profit and move on. I'm going to help you avoid flipping failure. So we just got done renovating this house and I want to show you the numbers of what it actually costs to renovate a house in 2022. Let's go. Fuel pane windows $7,000. One kick ass kitchen 15 grand. Front backyard landscaping $8,000. Interior paint $3,000. That's about $3 a square foot. Bathrooms around $15,000 for two and a half baths. Flooring, tile, carpet all the way throughout. 2,200 square feet. Right around $22,000. About $10 a square foot. Light fixtures, ceiling fans all the way throughout. Roughly $2,000. Okay, so some of the things we can't see is a roof was $12,000. H vac $6,000. Electrical 3500. Plumbing 4500. Trash out 4000 plus 12 teenagers. And for a total of $182,000 was the total cost to renovate this house. So if you didn't know those numbers before you started having a bid, you might end up over budget because you didn't know. So it's important to know these numbers or have some sort of semblance in it before you buy a house. Follow me at I Am Steved Valentine. I'm one of the most sought after problem solvers in the Phoenix real estate market because I'm a real estate strategist, not just a salesperson. So if you want different tips and tricks on what you could be doing with your current home, maybe buying an investment property or doing a flip, I've got you right here at I Am Steve D. Valentine.