When starting a flip it’s best to have several components in place so that you get the most for your money. You should have your tare out crew, repair/contractor and vendors in place. In this edition I’m covering the tare out being performed, plus the added surprise we had while taring things out.
It’s can be cost effect to have a separate tare out crew of two to three people, make sure they know and fully understand how you want the tare out completed. You can save money utilizing a small crew like this as opposed to having your contractor charge you to tare things apart and put them back together again. Outside the cost of the dumpster this tare out from the completed state you saw in the first video cost around $100.00
We had a small surprise, while taring out the old, it was discovered that there was a water issue. A water pipe had busted and the drywall was soft and wet with some mold appearing. The lower half of the drywall separating the laundry area and baths had to be ripped out as well. While removing the kitchen counters there was soft drywall as well.
Lesson to be learned here is that you must prepare for surprises whenever rehabbing a property.
When you start a rehab set a budget, get your estimates for the work, when you have those totals add an additional 20% to 25% to the total cost to cover unexpected things.
The budget for our flip is $10,000 so we factored an additional 25% to cover things like this so our total budget on the flip is $12,500. If we hadn’t factored things in this manner these surprises may have ruined or flip.
Stay tuned for more.
1 Comment
September 20, 2009 at 8:40 am
Great Blog, great content as usual, nice informative videos,etc. Keep up the good work John.