Our real estate agent had shown us a few houses last week but they were either going to be too expensive to repair (like the hoarder's house - I might have to write a separate post just on that for you guys) or the seller was asking too much to make it work. To be honest, we were getting a little discouraged on our house flipping endeavors. In fact, after seeing the last house, we had decided to take a break from actively looking (aka stalking MLS and Craigslist and Zillow like it's our job). Then, after a dud showing, our agent said there is this house that hasn't gone on the market yet - would we like to swing by and take a look? She also mentioned it is in great shape. Um, yes, yes we would.
THE GOOD
We pulled up to the house and it was love at first sight. The exterior is in perfect condition and even though I am not usually one to like a yellow house, the color made the home feel so cozy. The inside was even more darling. Original oak floors, beadboard ceilings, wraparound porch, two fireplaces (!!!), clawfoot tub, and UNPAINTED wood trim (the list goes on, people) are just a few of the features in this house that got me all excited. Plus, this house is located downtown and is walkable to the new restaurants, shopping, and breweries. Yasss.
THE BAD
Even though the house is in great shape and most of the work will be cosmetic, there are a couple of big ticket items we have to address like adding central heat and air (currently no AC in the house), updating the electrical panel to 200 AMPs, and relocating the hot water heater from the kitchen to the crawlspace. It also needs a completely new kitchen (cah-ching, cah-ching). The street it is on is nice, but the surrounding streets are a little rough around the edges.
Here are the details:
List price: $57,500
Bed/Bath: 2/1
Square Footage: 1114
Built: 1930
FLOORPLAN
Renovation Estimate:
Porch Stairs 500
House Numbers 12
Flooring 5000
Trim Touchup 30
Plaster Repair 250
Paint 400
Beadboard Repair 50
Light Fixtures 1000
Hot Water Heater 1000
Electrical 1000
HVAC 6000
Cabinets 1500
Countertop 1000
Sink 200
Faucet 110
Appliances 1800
Backsplash 200
Hardware 50
Clawfoot Tub 300
Vanity 700
Faucet 100
Toilet 120
Hardware 70
TOTAL 21392
TAX 1443.96
10% BUFFER 2139.2
GRAND TOTAL 24975.16
After the reno, we are thinking we can get around $100 a square foot for this flip house based on homes that have sold nearby that are the same caliber. That would give us an after renovation value of $115,000. I think the home is priced pretty well as is, but I think I would feel more comfortable going in with an offer of $50,000, and then meeting somewhere in the middle with the seller.
$115,000 ARV - $53,500 PURCHASE PRICE - $25,000 RENOVATION - $8000 CLOSING COST/REALTOR FEES = $28,500
VERDICT
Although a tad small and a 2 bedroom/1 bathroom configuration, this house is as cute as a button. If I am in love with it pre-renovation, I think a buyer will be smitten when we are done. Therefore...