What would you do if you won the lottery? Would your life drastically change? You know what I’d do? Flip and / or renovate houses full time. It’s basically an impossibility winning the lottery will ever happen since we don’t play 🙂 but regardless I think the answer to that question gives you a good idea where you passion is. I figured we’d give you a tour of a flip that AJ and I toured the other day so you can see our thoughts on entering a project like this and so I can give you a good laugh by watching us be awkward on camera (but seriously, cut us some slack, it’s the first time we’ve ever taken a video of ourselves so we weren’t completely natural). VIDEO HERE.
Picture of me here in my “touring the flip” outfit with one of our partners in crime so you can imagine I’m actually giving you the tour if you can’t watch the video. 🙂
Lately AJ and I have had a, very thankfully, full schedule with real estate clients. Many of them are first time home buyers whose budget is $325,000 or less, which generally means they are purchasing a fixer upper and that’s only in certain towns around here. The majority of our investment properties are in Gloucester, MA (if you’ve ever seen George Clooney in The Perfect Storm that’s where the story was set and partially filmed). It’s generally a fairly affordable town for Boston’s North Shore.
This home is listed for $245,000 which is one of the absolute cheapest homes in the area. Our guess as to why it’s sat on the market this one has to do with the amount of work but also because the entire area around it has been under construction for a home being built next to it (and we think potential buyers were scared off by the unknown of what was going to be built). It is in a good section of Gloucester, has two good looking houses in front of it and has the river directly across the street.
The kitchen was in two different rooms. Our vision was to knock out the back wall here and put in French doors to a porch in the backyard and convert this into the eating nook of the kitchen.
All cabinets and appliances would be in this part of the kitchen including an island in the center of the room… somehow designed in a way to still allow flow from the side door.
This home would need new electrical work, windows, floors, two bathrooms, laundry and a kitchen. The wiring and roof both need to be redone. The exterior of the home would need new shingled siding over the back of the home and a new roof…. Not to mention a lot of work just giving it curb appeal.
This is the sunroom and obviously, it would need to be completely reworked, but as you’ll hear in our video we think the best use for this space would be a dining room because it’s so long and narrow and heated!
The living room is a great size with an easy design for furniture placement. The hardwood floors are in pretty good shape and just need to be refinished. There needs to be substantial work done on the area on the outside of the photo to the drywall.
This is the area that AJ calls the woodshed. It needs substantial work or to be completely rebuilt but because it’s right next to the bathroom and has an exterior door we were thinking it would be the perfect laundry / mudroom.
The bathroom has the world’s smallest tub, which is actually just a little larger than a typical stand up shower base. This space would need to be completely redone and we envisioned using one of the rooms upstairs and turning it into a full bath (because it would be directly over where the sink is in the kitchen).
I have no photos of the upstairs but you’ll see our vision for it in the video. It would involve not just creating that bathroom but knocking down some walls and moving a doorway. The estimate for the work I outlined above, based on other projects we have completed would be approximately $65 – $75k. In the current market we think it would sell for $350 – $375k once the work was complete.
Hope you enjoyed our little potential flip tour to give you a feel for the kinds of things we think about when casing out an investment opportunity like this! Feel free to leave any questions in the comments below or shoot me an email at firstname.lastname@example.org and I’ll answer you personally or in the next real estate post.