If you haven’t heard, Henry Washington and I are doing something special to commemorate the 200th episode of Star Wars in the market. We are having a Flip/Off competition, pitting ourselves against each other to see who can get the highest returns.
We describe our deal and what we hope to achieve on the podcast, but I wanted to keep everyone updated on the progress of my flip. So each week I’ll be updating this diary so you can see how my property is transforming into the high cash flow deal I know it will be.
Be sure to listen to the Flip/Off episode in the market Please leave your comments below and tell me what you think I did right and wrong in my house flipping victory.
Week 1 review
We started our project on TEAR. When purchasing a flip property, investors often take advantage of hard-money construction loans with expensive interest rates. The interest expense of flipping a property can eat into profits, turning a good deal into a mediocre or even terrible deal.
Our way to prevent project delays is to fully bid the property to the contractor before handover. After estimation, in order to reduce costs, we directly subcontracted:
- Electrical panels and masts
- Furnace installation
- Electrical appliances
This saved us approximately $3,100 in cost.
We obtained a new electrical permit on the day of closing, which allowed us to install the new electrical panel, sign off on it, and begin providing power to the rest of the project. Proper preparation for the project allowed us to hit the ground running and make some progress on the timeline.
What got done this week:
- Demo – on budget
- Install new windows – on a budget
- After the new bathroom frame was completed, we made some modifications and opened up the kitchen wall an additional 2 feet.
- New electrical panel installed and signed off – on budget
- Install new mast and instrument base – on budget
Unexpected question:
Water meters were spinning like crazy, shutting off water to the streets and checking for small pipe leaks, hiring a location company to track the locations – price to be determined
Plans for next week – rough completion of this project:
- Stove to be installed
- Pipeline work is about to begin
- Electricity roughage is about to begin
- Selection of specifications for property finishes
We are racing to get Henry’s deal done. Of course, at Henry’s price points, they typically generate higher cash returns. If I want to stay competitive and win this rat race, we’re going to need to stay on budget and try to shave off a month. The game begins! I have full confidence in my team and the JUMP in our schedule.
Whose real estate flipping can bring the biggest returns?
House flipping competition like never before! Henry and James detail two recent flips they’ve been working on and pitted them against each other to see who could get the highest returns. Which property will win the Flip/Off?
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.
