House flipping success is dependent on time and budget. A critical aspect of both of these is your plan for renovation. Proper planning can save you time and money. I recommend getting started and detailing your plans as much as possible to ensure you’re starting on the right foot.
I’m going to break down when your planning should start and what to include to make the most of your flip!
When to Start Renovation Planning
In short: The sooner, the better. First, you’ll want to assess the home and determine what renovations are needed. I have talked about the common mistake of over-renovating. Be sure you choose renovation projects that add value and make sense in your budget and timeline.
Planning can start as soon as you put in your offer, and you can have a lot of things decided and planned by the time you close, which saves you time and money. Plus, once the house is closed on and it’s time to get started, you’re ready immediately.
Remember that you are only one person involved in your renovation, so getting clear on your plans and schedule will ensure nobody is held up and your hired contractors can get to work as expected.
8 Things Involved in Planning Your Flip Renovation
Your planning efforts can be broken down into eight topics: Analysis, budget, timeline, contractors, repairs, demolition, rough-in and finishes, and review.
These ten things should be included in your planning so you can allocate time and project the right timeline for all involved in your project.
Analysis
We touched on this above, but before you put the offer in or think about planning, you need to do your due diligence on the home you’re considering.
Be sure you have done proper research and feel confident in the location, potential, and price point of the home you’re looking to flip. Once you have decided to move forward with the home, an analysis of what exactly needs to be renovated is the next step. Consider what will add value and buyer appeal, and consult local comps and people in your network for ideas and support in these decisions.
Budget
Your renovation budget will be roughly determined when putting in your offer, but the more specific you can get during the planning process, the better.
Your budget for renovations will vary from house to house. Typically, older homes will be more to renovate since there is more updating involved, and you may need to bring things up to code.
Plan your budget room by room, and don’t forget to leave a cushion in your budget for unforeseen issues or complications that may come up.
Timeline
Time is money, especially on a flip. Your timeline will go closely alongside your budget, and getting your timeline buttoned-up asap is critical. You’ll want to consult all involved on the project for their feedback on the timeline. Be sure you’re choosing contractors who can meet your needs and have experience in the renovation projects you’re planning to do.
Side note: You will obtain permits and determine whose responsible for inspections along the way.
Contractors
Choosing your contractors can be a process. You want to vet anyone you bring onto your project correctly, and I recommend starting with friend and family recommendations, moving to online reviews, etc.
Find a good pool of options for the contractors you need, and provide them with your timeline, budget, and other relevant project details for them each to bid on.
Repairs
Major and minor repairs should be planned for as well. These can be ones you have already seen or things you see after closing the property. When planning for these repairs (major and minor) allow yourself a few weeks to complete them.
Some repair examples include roof replacement, exterior paint, a new mailbox, etc. As you can see, they can be extensive repairs or minor.
Demolition
Demolition is typically quick and straightforward. You’ll want to schedule no more than a week for this.
Rough-in and finishes
Once you’ve completed demolition, you’re left with a clean slate to get moving. “Rough-in” is when things are built out again, in a “rough” fashion. This phase can include framing, plumbing lines, mechanical, and electrical.
Rough-in time will vary depending on the project, but you likely won’t need more than 3 or 4 weeks. After this will be your finishes, indoor and out, and these will take longer, depending on what you’re renovating.
Things like drywall will take much longer than bringing in new appliances. Allocate a few months to this part of your flip for a sizable home and many changes.
Review
Once your flip is almost complete, you will want to walk through and make any necessary changes. When planning for this step, allow yourself a few days in the schedule if things come up.
The Bottom Line
When you’ve got a solid plan and begin quickly, you’ll be able to adjust as needed for unexpected items without losing significant time or money. Flipping houses is a large undertaking but is made much easier with a solid plan. Dedicate the time to creating a plan that works and addresses all aspects of your flip.
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