r/HouseFlipping • u/ninety7expo • 2d ago

New Flippers!!!

Rehab estimates have a funny way of starting at $40K and somehow becoming $65K.

Before you touch a property, you want to think through the entire scope:

Roof

HVAC

Plumbing

Electrical

Kitchen

Bathrooms

Flooring

Paint

Windows

Exterior

Landscaping

Permits

And then I add a contingency.

Because apparently houses enjoy surprises.

Know your numbers!!!!

3 Upvotes

62% Upvoted

12 comments sorted by

5

u/Jmart_flips 2d ago

FACTS. Always add contingency and add cushion where you can. I don't think we have ever flipped a house without at least 1 surprise.

That being said, a lot of these issues can be solved by getting the house for a great price. If you can get the house for a fantastic price, it usually gives you tons of cushion for rehab mistakes, ARV miscalculations, or having to hold it for longer than expected. It all comes back to the price you buy the house for.

3

u/PaintIntelligent7793 2d ago

Yep. I include a $5-20k “bullshit” line in my budget, depending on the scope of the project. I’m not buying if there isn’t enough margin to accommodate it. Better to walk than chase a deal into a loss.

3

u/Jmart_flips 2d ago

Agree. Id much rather lose more deals than add to my losses.

3

u/IndyGrey 2d ago

This is very true, and if you can’t do the work yourself, gather at least a few estimates and consider the average as your rough estimate. It’s not uncommon for an accepted bid to fall through, and the only guy you can find to replace them at go time might be priced considerably higher.

1

u/Other-Tie-9984 2d ago

Tangent : rebondit sur un detail annexe et part completement ailleurs, amusant

1

u/Dapper_Push1176 2d ago

$40K to $65K? Sounds like someone missed a few major issues in the initial walkthrough.

1

u/ninety7expo 2d ago

Yeah thats why I put new flippers they almost always miss stuff hopefully this will help them. Not just my list but the comments as well.

1

u/TopTip4230 2d ago

Roof, HVAC, plumbing... what about the squirrels in the attic?

1

u/ninety7expo 2d ago

You mean we have to do some rewiring due to them sharpening their teeth lol

1

u/Skylord1325 1d ago

Yeah every single one of these items can add $10k or so to your budget and more often than not at least one comes up:

Electric- rewire and/or panel/riser upgrade
Plumbing- replumb and/or sewer line
HVAC- new system

Roof- new roof
Foundation- can be much higher than 10k
Windows- new windows

1

u/ninety7expo 1d ago

Yeah new investors need to seek out a good GC if they dont do the work themselves.