AM FinTech to Flipping Houses
I have been buying and selling condos (that I live in) through relative value and lower overhead (only one side of broker fees and mortgage payments to counter out closing costs). My wife and I only did minimal updates and I mean super minimal stuff like new carpet/paint at the most. The real upside was just buying properties that didn't show great and then selling them with better furniture decor and a hot market.
Most recently we bought a house in a very affluent town with almost no new construction and are working on flipping it as well. Recently similar sized homes with new kitchens, decks and some updates to bathrooms etc are going for about 300-350k more than ours sold for. Ours also has the value add of a 2 car garage you can actually use, substantially larger plot (can add a floor to the ranch w/o variance).
Kitchen is 70k to fix based on contractors quote. Each bathroom is 25k. Had the contractor do the deck as that would be a big time sink if I did it and it is much larger than most in the area as the land is big selling point of this house.
For the kitchen I am considering a reface instead of a gut. The kitchen is big for the area and needs new counter tops, new backsplash, new floors(currently laminate), new appliances and new cabinet drawers/paint or some other finishing, new windows, double glass doors into dining room.
The quote for 70 included lots of demo work, moving appliances, new electrical work, and an oven vent to bring the place up to code, new insulation, painting, hardwood floors, new and more cabinets and taking a wall down.
Things that need to be done:
Get kitchen to acceptable standard
Update 2nd Bath
Gut Master Bath
Update garage
Paint house and foundation
Wallpaper striping/painting remaining rooms
Replace carpet in basement with vinyl planks
Replace 4 old windows
Landscaping - In progress coming out very well.
Retaining wall repointing
New Central AC unit
I want to try and make a lot of money on this because I want to move to a lower cost (Portland, Austin, Dallas) area and do this as a job where I can use cash to get better prices and cut out all the middle men (mortgage fees, broker fees). I think the key aspects I need to perfect are my skills in flooring, painting, masonry repair, tiling, landscaping and custom storage so that I am doing enough of the work but can still finish quick enough to cash out in a reasonable amount of time.
Am I crazy to consider this as a job? My biggest concern is I am late in the cycle and housing is going to slow down but is that any worse than the lack of inflows into active asset management?
Hey LeadingIndicator, the following topics might be helpful:
Calling relevant professionals! NYMetsFan ISalesBroker27 pacificnor
Fingers crossed that one of those helps you.
bump
seems like an interesting discussion and something I would like to do once I have more $ saved up
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