I have not written about my fix and flips for a couple of months, but they are still going strong. I am still having contractor issues, but I hope I fixed that issue this week. I have also run into some major issues on a house that you will see in one of the videos. I bought a new flip in the beginning of May, I am buying another flip at the end of May, I have one flip on the market and under contract and hopefully two more flips coming on the market soon.
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Before and after videos of my recent flips
The first before and after pictures are on a flip I bought back in July of 2014. I am taking way too long to repair my houses and that is why I am making a big change this month. Over the last two years I have had from five to ten flips going at once and not nearly enough contractors to repair those houses quickly enough. This house did not have the work start until January, because I was waiting on contractors to finish other jobs.
I bought this house for $100,000 and I think the repairs will come in around $30,000. The house was listed the end of April for $177,900 and we had two offers right away. The home went under contract and is set to close the beginning of June. We had to replace windows, flooring, the kitchen, bath, hot water boiler and the front yard.
The second flip is a house I am currently working on that is not going so well. I bought the house for $75,000 back in October of 2014 and new it would need a lot of work. I was planning to reside it, replace windows, redo the kitchen, replace the stairs and make many other minor repairs. It turns out the back of the house was an addition that was sitting on rotted wood beams. The front of the house was barely supported in the back as well. We had to completely gut the house and tear down the back of it.
I was not real happy to learn the back of the house had to be torn down since that was where the bath was and the only nice part of the house when I bought it! However, by tearing that part down we can make a new addition with another bedroom and possibly two baths, which will greatly increase the value. At the same time we are going to tear down the garage and rebuild an attached two car garage. I first thought the house would be worth around $160,000 as a 2 bed 1 bath, but now it will be worth closer to $200,000.
I will have more videos of this house as the work progresses.
Here is another flip that is almost done. I bought it in November of 2014 and it needed about $20,000 in work, maybe $25,000. We finished off a partially finished basement, put in a new kitchen, new doors, flooring and paint throughout. I think it will sell for $225,000 and we bought it for $151,500.
Change in the way I am repairing my flips
It has taken my way too long to repair my houses. I have a flip that I have had one year now and it still is not done! It was partially my fault because I took too long to hire a contractor on it, but the contractor has been working on it five months and still is not done. This month I decided to make a big change that I have been thinking about for a while.
I am hiring a full-time fix and flip/rental property repair manager. This person is actually one of my contractors, who happens to have a lot of management experience. I want this person to manage all of my repair projects and maintenance. I don’t want him doing the work himself, but hiring subs, determining prices on jobs and making sure things get done as quickly as possible. I hope this one hire will cut down the time it takes me to flip from 6 to 12 months to 3 to 6 months. By cutting that time in half I can do more flips, make more money and more than make up for the cost of the repair manager. If things go smoothly I may even start looking at completing jobs for other people to make some extra money.
Fix and flip news
I continue to buy more flips even in a crazy market. Our median price in Greeley went from $195,000 in December to $220,000 in April! There are deals out there it just takes patience and flexibility. I had to buy a house for cash in six days earlier in the month. Another house I am buying at the end of May is occupied by tenants, who I have never talked to and I have never seen the inside of the house. Below is a video of the house I bought for $166,000.