Residential Real Estate Inventing - Part 3

This home was purchased with the idea that it was going to be our first flip.  The home had originally been used as a small home church so the living room was exceptionally large with beautiful hardwood floors.  When the owner moved she took what she wanted and left the rest.  The inside was filled with stuff accumulated for years.  There was no telling what was underneath but also no indication that the owner had abused the home in any way.

From the time the offer had been made on the home the market was showing noticeable signs of slowing.  We decided that we would benefit from having a renter in the home in case it took longer than expected to sell.  It turned out to be an excellent decision as the home was not sold for almost two years.  

  

The home had been painted yellow for years so we wanted something different to catch the neighbors eyes so they would ask questions.  The strategy worked and we had people driving by and talking to us.  Small towns are like that.  Yes, the picture below is the elk that came into the front yard every morning eat and grazed their way down the street.  This street is one street over from the main road that goes through town. :)

                                                      Materials and Labor               
All rooms paint                                           400               
Cleaning                                                     330            
Refinish Kitchen Cabinets                          130    
New flooring                                               300        
Dining room Light fixture                            175 
Laundry room Floor                                   225
Living room Take out paneling                    0
Hard wood floors - clean and buff              350
Back of house Sheetrock two rooms       2,000
New floor covering in back half                  600
 Bathroom?
Exterior Paint                                             600                           
Front door in dark accent color                   30                   
Lots of yard work!                                      730
                                                              
This was my preliminary worksheet and was done before the purchase of the home.  We had originally done spreadsheets with a $5,000, $10,000, and $20,000 budget.  We have found that this is helpful whether you plan to spend it or not because it helps to envision the house with different possibilities and then choose the most important items. 

As we got in to the project we found that I had over budgeted in some areas and under budgeted in others.  This is not unusual but becomes more accurate as experience is gained.   One area I over budgeted was redoing the kitchen floor.  In the cleaning we found some extra tiles and were able to repair instead of replace.  This saved a day in labor and the cost of the vinyl.  In contrast, the yard and rubbish removal was much more time and expense than expected. The pruning was done in January.   In the end the yard looked inviting and homey but I had a case of pneumonia.  The temperature was 25 degrees and I did not want to get behind schedule.  It's a good thing I enjoy reading.

The total planned expense was $6,100 and we came in way under budget.  No other expenses were needed before it was sold since it was the residents who purchased it when the first time home buyer program became available.   The project was extremely fun.  I worked with two good friends and we talked and laughed so the days passed quickly.  All provided ideas and suggestions for how to accomplish every challenge.  When the project was finished I was ready to do another but we all know what happened with the housing market.