Part Time REI » over improving

The Top Materials for Countertops Part 1

Erik Hitzelberger — Fri, 06 Dec 2013 17:15:14 +0000

What’s the one item that sets the tone for the kitchen. The statement of the kitchen? From experience we can tell you one of the first questions we always get about our kitchens? ” What are your countertops made of??”

So we thought we would write a series on countertops. With the never ending options that seem to grow daily it is hard to know what choice will be right for your remodel. What choices are out there? What makes the most economical sense for this house? How will I know if I am over-improving? In our never ending attempt to education first time flippers and help refresh seasoned flippers we have put together a list of traditional an non-traditional countertops and some pros and cons for each. In this first part we will look at Traditional options.

Traditional

Laminate

Made of paper blended with resins and fused to particle board, laminate has been a kitchen mainstay for decades. It hasn’t always had a stylish, desirable reputation . However, the latest designs on the market mimic stone, butcher block and other pricier surfaces.

Pros: Laminate is one of the most affordable countertop materials, so it’s a good choice if your budget is tight. A comes in a variety of colors, is low maintenance and easy to clean. Its light weight doesn’t require the support of a thick cabinet base.

Cons: Laminate is prone to scratching, burns and, in some cases, staining. With wear and moisture exposure, the layers can peel. Because of the raw particle board core, you can’t use laminate with undermount sinks, and it’s also difficult to repair if it gets damaged. Cost: $10 to $30 per square foot, installed

Granite

One of the most popular countertop choices, granite defines refinement in a kitchen.

Pros: Holds up to heat,comes in a range of almost 3000 colors. It will last a lifetime. New sealers make it almost maintenance-free; 2nd highest hardness rating after diamonds.Home buyers. love this stuff!
Cons: It is expensive, but becoming more affordable. Requires some maintenance and some stones absorbs stains if not sealed. Your knives can become dull if you cut on it and lastly it can crack if stressed or improperly installed due to its heaviness.

Cost: $35 to $100 per square foot, installed

Quartz

Crafted of resin and quartz chips tinted with color, quartz surfacing (also called engineered quartz or engineered stone) is a good compromise between the beauty of stone and the easy care of solid surfacing.

Pros: Quartz surfacing has the same advantages as solid surfacing with regard to maintenance. As an engineered product, it’s available in a far greater range of colors and patterns than natural stone.

Cons: This material doesn’t have the natural variegation of granite, so it may be evident that it’s an engineered product. It’s relatively pricey, although its durability can make it a worthwhile investment.

Cost: $40 to $90 per square foot, installed

Marble

Really there is nothing that looks and feels more glamorous than a marble countertop. Head of its class in terms of its luminescence and distinctive veining, it’s an ultra-traditional choice.

Pros: Perhaps the most luxurious option. It stands up to heat well, and because it remains perennially cool, it’s a traditional choice for pastry and baking stations .

Cons: Marble is probably the most prone to staining, even with sealing. For that reason, it’s not often used throughout an entire kitchen. It can also scratch and chip.

Cost: $40 to $100 per square foot, installed

Stay tuned for our second part of Top Materials for Countertops when we look at less traditional options for your kitchen.

This might be a little much for your flipping farm area…

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Why Flippers Fail

Erik Hitzelberger — Wed, 11 Sep 2013 16:30:51 +0000

Epic House Flip Fail?

It happens to the best of us. Mistakes are made, time and money are lost. A bad flip. But don’t feel too bad; even pop star Ricky Martin had a failed flip in 2010. Guess he wasn’t Livin’ La Vida Loca that year. But how can you as a part time real estate investor stay out of the pitfalls? Let’s talk a little bit about why flippers fail.

Here are our top five reasons why we feel new house flippers fail.

1. Paying too Much

We know that you are excited when you get that first deal. Keep in mind that first flip can set the tone for your flipping career. While the first flip is a learning experience, you must do your research to make sure you know what you are getting into. Check out the neighborhood yourself or have your realtor work up comps for you. Over paying for a property will not leave you in a good situation. Don’t let a loss for a brand new investment business could be too hard to overcome.

2. Lack of Planning

We say this in about every blog: Have a system and stick to it. Jumping ahead in the flipping world with out laying out your strategy is not only dangerous it could ruin your flipping adventure. Having a system and using tools like your Property Repair Estimate Sheet will keep you organized and have an idea how the flip is going to turn out. Without a system, a flip could turn into a disaster.

3. Not Supervising Contractors

While we encourage part time flippers to hire contractors to keep the bulk of the work off your own shoulders, don’t forget to supervise. Often, first time flippers think that all they will have to do is hire contractors and then they can go back to their day job and not check in. So much can go wrong if you do not check in on how the contractors are doing with your Scope of Work (SOW). Let the foreman know if he is to make decisions on the spot, or should a contractor contact you first. Keep in mind that not all contractors have the same morals and values as Tim the Toolman Taylor. With out supervision, they could drag their feet getting the work done, take 3-hour lunch breaks or actually be doing another job while they are supposed to be doing yours.

4. Unrealistic Timeframes

This mistake can be avoidable if you educate yourself on how long it actually takes to complete a flip. How busy are you? How busy is your contractor. What is the market like in your farm area? A good rule of thumb to follow from Bigger Pockets: Give yourself six months; plan all your carrying costs and expenses for 6 months, then work towards getting it gone in three to four months depending on the extent of work needed.

5. Over Improving

Don’t make this mistake. Don’t rehab the home the way you would like for it to be. Don’t pick out designer tiles or trendy paint colors. Remember you are trying to appeal to potential home buyers, not your personal taste. Yes the marble counter tops will really look nice but an upgrade like that could price yourself right out of the neighborhood. Neutral options that are comparable to other homes in the area will best serve you to sell the house.

Read more about this at Bigger Pockets, a social network for the real estate investing community.

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Don’t Over Improve!

Erik Hitzelberger — Fri, 30 Aug 2013 16:14:33 +0000

Be careful not to over improve!

Does your agent suggest you add some extra touches? Once the restoration part of the flip is done, do some things seem too outdated or dirty? Does the new flooring and the new coat of paint now make some things about the house not acceptable? Do not get into this mind set.

Because if you do, or you let your realtor talk you into the granite kitchen countertops, or upgrading lighting throughout and replacing the front door, this could add another $5,000 to the already exceeded budget. Then you will have to find someone to do the work and you have added another few weeks onto your investment being on the market and ready to sell. Stick to your original Property Repair Estimate Sheet from your original walk through. It is one of the more important documents you need to ensure you do not over improve and have your flipped house looking like Liberace’s. This document should include a list of all of the major items (roof, HVACs, kitchen, paint, flooring…) as well as cost estimates for each item. You should complete one of these during your initial visit of every house you look at to attain your After Repair Value (ARV).

This might be a little much for your flipping farm area…

Those granite countertops sure do make your property pop though. But it’s not necessary to install granite countertops, oil-rubbed bronze fixtures and travertine showers in an $80,000 property. Few homebuyers will see the value in these kinds of upgrades and an appraiser probably won’t either. So in reality you will not get your money back on those types of upgrades.

As a matter of fact BiggerPockets.com has two main tips for making sure not to over improve a property.

View other comparable properties in the neighborhood (preferably other flips or normal sales) and take note of their improvements and finishes. Use similar ones for your deal.
View new home models and take note of their designs, paint schemes and finishes. Homebuilders pay professional designers big bucks to decorate their houses so copy what they do for your properties.

In conclusion, keep the emotions out of the flip. Just because it is a feature that you or your significant other would love to have in your own house doesn’t make it a necessity in your investment. Remember just that; this is an investment, doubly so especially if you are flipping houses on a part-time basis. This way you will save your self the head ache and heart ache of over improving and keeping your investment your source for a profitable future.

Source: http://www.biggerpockets.com/renewsblog/2012/10/04/over-improving-house-flip-profits/

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