Have you ever seen a house and thought yourself that you could flip this for a profit? As we are nearing the end of the year I am looking to find just a couple of more projects. Last week I had another investor reach out and ask if I was interested in a house in the same neighborhood as the Harriet House we completed this summer. So we co-ordinated a time and day when I could walk through the house.
Even when purchasing a house from another real estate investor or wholesaler I always do my own due diligence. I will go look at the house and the neighborhood from the perspective of a buyer. That way, I am looking at everything just as a buyer would if I were to sell the home when the renovation is complete.
There are several established blocks in this particular neighborhood and so the level of maintenance can vary greatly from house to house. On our project from this summer, we were incredibly fortunate to have well-maintained homes around the home we were working on. That is a huge bonus.
With the house I looked at, that was not quite the same, and some of the houses that looked as though they needed work were REALLY in need of work. But, there was also a new construction house next door as well so it was a unique mix.
When I walked into the house there were some great spaces but some areas that just wouldn’t work with my renovation plan. The ceiling height in the lower level wasn’t enough to add any additional square footage for living space. Also, the bedroom layout in the upper level didn’t allow for a true master suite. With the size limitation and a certain sale price needed, this home was one that I chose to pass on.
BUT….since I was already in the area, and I had a bit of time before my next meeting, I decided to go so some exploring. One of the strategies I have learned over the years is if you are only looking at the price then you may miss houses that are larger or needless work but have a higher resale price.
That is how I found the house. It has been on the market for more than 70 days and the price had been reduced 50K during that time.
When I walked through the house, the exterior is pretty standard and in good condition. The roof is approximately 2 years old and the exterior could use a fresh coat of paint. Because we are going to be closing in December, we will have to delay the painting until the end of the project which should be March/April.
The areas of this house that really stood out when it came to potential are:
- Large foundation size compared to many of the homes in the area
- Ability to add a master suite in the upper level
- A large, unfinished, basement with a great ceiling height
- A two-car garage (only about 50% of the homes in this area have this feature)
- The kitchen area can be opened to the other main floor spaces to create an open floor plan
- Curb appeal potential
Any of these looking familiar???? If you have downloaded the fixer-upper checklist, then you will see some repeats.
We are going to be measuring this week for the drawings and permits so we can start scheduling the contractors to walk through and prepare their bids. We are closing on December 17th so we will likely have a couple of weeks where there isn’t much going on with the holidays, and that’s okay. If we do get the bid review complete and sign contracts, then we may be able to get some of the initial demo work completed during the last couple of weeks of December.
I will be walking through the house this week for the repair list (scope of work) and will document the spaces and the plans as I walk through so you can be part of the project.
Make sure to check-in for updates and progress as we get started. I can’t wait to show you all the changes that will be happening soon.
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Amber
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