Flipping House Series: The Money “Drain” House Part 2
Here’s an overview of what we are doing with The Money “Drain” House.
This house is a 3 bedroom, 2 bath Bi-level with a 4th bonus room on the lower level and an attached 1-car garage. The house is located on a corner lot in a good established neighborhood. The target buyer is a first or second time home buyer and the target price point is slightly above the median selling price for this neighborhood. Attractions for the house are the open kitchen floor plan, a finished lower level with a second bathroom as well as the large corner lot with fenced yard. A problem that we would end up running into is a water drainage problem at the lower level patio which causes water to get into the basement. This problem was solved by digging a trench to the natural drainage ditch and burying a drain pipe.
The REHAB plan:
-
Remove overgrown shrubs and freshen the landscape beds
-
Paint interior
-
New carpet, vinyl, and tile throughout.
-
Salvage kitchen cabinets by painting them, and install new counter tops and appliances
-
Remodel both bathrooms. Add wow factor with ceramic tile tub surround instead of plastic surrounds which were in all the comp houses. Also ceramic tile flooring in bathrooms.
-
Upgrade all lighting fixtures
-
Add tile floor in the lower level entry from back yard
The One Challenge to Highlight
The first hard rain revealed a problem that the lower level patio was not draining and causing water to get into the house. Immediately had the general contractor assess the situation and determined that a drainage path was needed to the natural ditch in the front. We are resolving this problem but we want to stress the importance of having a contingency factor in your profit analysis. By doing this we will be enabled to still make a good profit even after this unplanned expense.
Stayed tuned to see how The Money “Drain” House turns out.
To learn more about Part-Time REI visit us at http://part-timerei.com/
Be sure to like us on Facebook or Linked In!
Comments are closed.