Full Video Transcript

Pat:

Right. So we’re in Hinesville, we’re driving out to check out one of our flips that’s been under progress. We closed on it about, about a month ago, a month, five weeks ago a client of mine closed on it. We’ve been managing the, the renovation process and we’re, we’re wrapping up here. So I’m coming to check it out. This project has been basically just a cosmetic-only rehab. We did fix some some rotten wood on one of the sheds, but other than that, you know, new roof, new floors paint inside some paint outside, new kitchen. We got new cabinets in, new countertops. I think the countertops go in today, so hopefully we can see that. Appliances are on order. The total budget was about $32,000 for all that stuff. Which is actually pretty good. I mean, we spent kind of the breakdown was the new roof on the house,

And one of the bigger sheds was about $8,000 and that includes the roof and a on this shed, there was a lot of rotten wood. We had to replace basically all the the 2×6’s on this shed. And the kitchen we spent probably another $7k or so – countertops cabinets just off-the-shelf cabinets, stuff like that. Paint inside was a couple grand, we put new we called LVP. It’s basically vinyl plank floors. It’s that stuff that’s looks like wood, but it’s not that’s very popular in a lot of houses, lot of, lot of buyers like that stuff. Typically we spend about $4 per square foot installing LVP, and that’s the price of material and of labor. So that cost us about $5,500, I guess. So this, this project’s been running along pretty, pretty quick. We’re actually a little bit ahead of schedule, so that’s good. The one thing that’s going to kind of hold us up is with the coronavirus and everything. Actually, the appliances are on back order, because they’re, you know, I guess most of those get made in China and the supply of chains are all messed up. So we’re gonna probably have to list it without the appliances in the house, which is not ideal, but you know, we’ll make do.

Alright, Hey, we’re here at 303 South Maple Drive in Hinesville. We’re gonna check on some progress. What we’ve done so far is you see, we’ve got a brand new roof on there. We’ve already painted. So this, this was just kind of nasty-looking so we painted this. I think it’s come out pretty good. These new shutters. I think, I think this goes really well with the house. This door is new. Of course we’re gonna mow the lawn right before we list this, but not a big concern just yet. This is redone. This is painted. And then you can see this little, little bit of concrete here. This is actually we did this because when we tore out the wall inside, we’ll take a look at it, but there was a lot of rot and the reason was, is water would come down and it would slope and it would get underneath the wall here. So you know, we had the contractor, you know, we said, Hey, let’s, let’s kind of seal this off and now it’s it’ll slope, you know, water will come and then it’ll run out. So that’s why that’s there. That’s a little, that’s a little thing. That’s something we didn’t really have to do. Because no, buyer’s really gonna catch that, but it’s, it’s good to do it. It’s gonna save somebody, you know, a lot of trouble because the same thing would’ve happened that, that wood that’s in that wall. Would’ve just rotted again, it probably take 5 or 10 years and you know, that’s a pretty cheap fix for us to do. Let’s go inside. So this is the LVP I was talking about on the floors. So this is what it looks like.

So this is the this is the LVP that vinyl plank. So it’s pretty thin. What, what a lot of people like about this is it looks pretty good, right? When you look at the floor, it looks good and it’s super durable. You know, you got pets, um you know, somebody, one of the dogs takes a pee on the floor, you know, if you, if you, if it’s on hardwood or if it’s on especially hardwood laminate, and you don’t clean it up right away, it’s gonna ruin that floor. And this stuff? Good to go. No, no problems. So most new construction is gonna have this if you own any rental properties, I would definitely recommend just, just put this in, right? It’s gonna be more upfront cost than carpet, but it’s gonna last so much longer. It’s a lot less hassle. I mean, this is just good stuff. And you can can buy this, um the cheapest I’ve seen is about a $1.60/foot usually about a $1.80/foot. And then like I said in the car, you know, the you’re gonna pay somebody to install. It’s gonna generally be about $2/foot to get this in.

So this was before, this was like an ugly tile in this room and we just, we just put the floor right on top of the tile, save a lot of money that way. Taking out the tile, um that’s, it’s kind of an arduous process. Um looking that way, we had some water damage over there that’s been repaired. So this is, you know, they came to the job said get it replaced, it got replaced, um repainted of course. The, this is new. There we go. This is a new light fixture. We’re keeping the original windows. These are double-paned windows, don’t need to replace them, even though they’re a little older looking, they still function just fine.

Alright. So in this bath we’re gonna clean it up. This is, this is basically the bath that it was before. This is, this is just gonna get cleaned up. We thought this was in good-enough shape. And this is an odd size vanity to find. This would’ve cost us some money to replace this. And now we’re gonna put a mirror in um. This light bar is new. I forget what it was before, but it was kind of ugly. So we just put a new light bar in here. This shower itself um,

We kind of debated on possibly taking the seat out. There’s that, there’s that seat there, right? It would’ve, if we would’ve had, if we would’ve taken that out, it would’ve cost us so much money to retile it. We said, forget it. Let’s just leave it. Somebody’s either gonna like it or not, you know, whatever. At the end of the day, it’s the hall bath. So it’s not as important as the master bath, which we’ll take a look at just in a second.

So here is our master bedroom. So we still got some doors on order that need to come in. You’ll probably notice throughout the whole house, we don’t have any of the air vents yet. So that’s, that’s a punch list item that we usually get towards the end of the project. Umthis window was not trimmed out before. So we put the drywall in here, and we put this window sill in. And this – let’s see.

So here’s our, here’s our doors, right? Our closet doors. This bathroom was actually already, this tile was already up. The previous owner, I guess, had started doing some work, you know, didn’t finish it. We put this new vanity in, we put this light bar that matched the other one. We’re gonna put a mirror in. Other than that, pretty much haven’t done anything. I think we’re, I think we do have a budget for some new, new fixtures here. I can’t remember if that was in the budget or not. There’s really nothing wrong with these the way they are, right. This is Hinesville, you know, we’re not, this isn’t a $300,000 flip, right? So, you know, you kind of want to look at your cost-benefit when you’re looking at money to spend um. Let’s start at the kitchen, and I’ll talk a little bit about some of those considerations.

Totally new kitchen in here. Um these are these are off-the-shelf cabinets. This is, I believe, where our sink’s going to go. So this hasn’t been cut out for the sink yet. This is where it’s gonna be dishwasher here. Stove’s going to be right behind you here. And then you can see this is, this is set up either for electric or you could do gas and I think we’re just doing electric. This will be your microwave and vent. So we kind of talked about all that stuff’s on back order with the coronavirus stuff. Typically, when you bring a house to the market, you want to have all the appliances in it, right? In this case, our choices are, you know, we can bring it to the market next week without some of the appliances, or we can wait three weeks for the appliances to come in. We’re just gonna put it on the market. You know, it’s not ideal, but better get on the market. Somebody’s still probably gonna buy it.

So that’s that so installation of new cabinets and countertops is $4570. All right. So that’s these new cabinets. These are off-the-shelf cabinets. This is butcher block countertop. We like butcher block because it still looks good. We’re gonna stain this a little bit darker. And it still looks good. I think in my opinion looks better than, than the laminate countertops, but it’s about the same price. This price point doesn’t make sense for granite, right? We don’t really spend granite until we get over a $200,000 house. And even in Hinesville, even a $200,000 new construction, they usually don’t have granite. Doesn’t make sense for granite. So butcher block is gonna look sharp. This gonna be stained a little bit darker. There’s gonna be some subway tile around. So I, I think it’s going to be good. You have like a darker wood floor with white, and then darker countertop, stainless appliances, you know, nice deep sink. It’s gonna go right here. Some subway tile. I think it’s gonna look pretty sharp. So we’re excited about that. We put these can lights in can lights are cheap. And I think these were all five of these lights cost us – Hey Gus what did the can lights cost us? Do you remember?

Gus:

I don’t know, $40-50/piece probably.

Pat:

$40-50 bucks a piece. Right? That’s one of those things that it’s worth it. Like put the can lights in people like a lot better. I think there was just like a, was it a fluorescent light?

Gus:

No, it was a some design. Like they had up there with little globe, little little, remember it had like, no, no that was one of the bathrooms. May have been a fluorescent in here.

Pat:

We, we got, we got pictures. We’ll take a look. Yeah, yeah. But whatever it is we looked at, we thought, look, we spend a couple hundred bucks, put some can lights in. It’s gonna look so much better. Looks a lot better. Kitchens, kitchens sell houses. If you’re gonna spend money anywhere, spend it on the kitchen, we spent little extra money. I think it’s gonna pay off well for us in here. So that’s, that’s the kitchen, right? Whenever you’re looking to flip, always check the electric system, right? This is a newer, this is built like ’84. So this is, you know, circuit breaker, right? The, some of the houses in Savannah that are older you’ll see a lot of fuse boxes and stuff, you know, and you might even see some, knobs and tube wiring. Luckily built in the ’80s. Don’t really have to worry about the electrical system.

We did a little work in here. You know, we got a new, new plumbing for the for the washer and dryer, right? So we come in here water heater, right? So, there was, this is like a pressure release valve right here, this little tank that was not on the hot water heater before. And then when you’re, when you look to sell a house to like an FHA or VA buyer, the, the appraiser’s going to come in and if they don’t see this, they put it in there. So we want to, we already know this is gonna go to a VA buyer most likely. So we just put it in before they even ask for it. So that’s something you want to budget for before looking at some of these flips. We, we replaced the whole, the whole roof. So we got new shingles on the house, new shingles here. And we also had to replace the actual you know, roof joints in here. They were two by fours, which is not, it’s not thick enough. Right? So they were all warped and sagging. So we put 2×6’s This was, this was all rotting out.

So I’ll get in the door so you can see, here’s our, our new see the ceiling here that we put in.

This was all rotten out. The reason this was rotten out is you can see the picture of this roof is it’s not very steep, right? When you have, have a shallow roof, you’re not supposed to use like the three half shingles that you see on the house over there. You’re supposed to use like a rolled roof because a shallow pitched the water doesn’t run off fast enough, basically. So you can’t have shingles like you see on a regular roof or else the water will kind of get stuck in there and it will seep through. And it’s just no good. So that’s why this was, this was rotted out.

So this this building here, this is the it’s an outside toilet, right? So it’s a little weird. You don’t often see that. The previous owner used to have a lot of, you take a look in there, used to have a lot of parties, I guess, and people be hanging outside and he thought, well, I want to have a toilet outside, so people don’t have to go in the house. The problem is what are we gonna do this building? We thought maybe, maybe we just tear it out. Right. But if we tear it out that costs money and then we gotta break up this slab and that costs more money, this concrete slab. So what we decided to do was let’s just finish it. So we finish it just to make it look better. And ultimately that’s cheaper than just tearing it out.

Right? Most people, you know, I don’t think this really detracts from the value to house. You know, either, either you want a bathroom outside or you don’t, if you don’t, you just never use it and, you know, whatever. I mean, heck they can tell the new owners can tear the toilet out and the sink and make it a little storage shed. I mean, whatever. You, so, so that’s why we just let that that’s the cost benefit, right? What’s what’s, the cost of tearing this thing out? Probably would’ve been $2k. So we thought let’s, let’s spend $500 or $600 instead just to make it look a little better. So that’s what we did.

So I think the last, the last video we shot was before it even hit the market, right? So we were driving around in the car, you know, my awesome video guy’s gonna edit that and it’s gonna be great. And, and that was a couple days before we hit the market. So we hit the market. You know, we had the photographer, did a really good job and he did 3D photos as well. And it’s like super cheap really worth it. Especially in Hinesville, you have a lot of the military people – like the buyer who, who chose our house actually was moving from a different part of the country. So like he never saw it in person until like a couple days before we closed on it. So I think that the 3D the 3D stuff really helped, you know, I don’t know why, you know, anybody wouldn’t do it for how, how cheap it is.

So we came to the market on like a Thursday. We had, I, we had 3 showings over the course of the first, like 4 or 5 days, which is a little bit, you know, less, definitely less than we’re used to. In like, you know, Savannah. But this is Hinesville. It’s a little different. It was still a little bit less, you know, we were hoping for more, we, we did know that the price that we listed out was probably a touch high. You know, $165k was more where we should have been, we were $169k. We said, Hey, let’s go for it. Like we staged it. We think we really crushed this, you know, this is better than the average house in the neighborhood so let’s, let’s get a little bit more we had one offer at like $160k and they wanted some closing costs.

And we said, no, I mean, we’re not even gonna counter that. Like, you know, that’s, that’s a game we do sometimes, you know, you don’t especially first, first week on the market, I try to get buyers to bid against themselves. You know, you give me a low ball at like the first weekend on the market. I don’t even want to counter it because if I counter it and you agree to it, what if somebody else would’ve taken a look at it, they could’ve put in their own offer. I’ll say, come on, you know, I’ll go to the agent and say, come on you, you gotta do better than that. So we did that and then somebody else showed it, they brought a full price offer. They asked for closing cost assistance, like $5,000, which is typical. Like we expected it. So we said, sure, we’ll go with these guys.

Pretty clean process. They did their inspection and of course they found things. Yeah. They gave us like a, they basically just copy and pasted the inspection report and well some of the stuff was ridiculous. So we just came back and said, look, we’ll do you know some of these, some of these things that ended up costing, like another couple hundred bucks that took about a month little bit more. I think it was like 34 days or something. We got delayed a couple days because of the lender which going into it, you know, they said that they were closing the month and a lot of loans, especially VA loans have been kind of slow lately. So, you know, I said to my client and said, I, I’m not super confident this is gonna close when they say it is. And it didn’t, but it wasn’t that big of a deal because we already kind of expected it.

So it did close, a couple days late. You know, it was a pretty smooth process. The appraisal was just fine, you know, the inspection, like especially any flip, there’s gonna be some things that get overlooked. So when they, when the buyers come in with their home inspection, they’re gonna find some stuff, you fix it, we want to make it right for them. So we did. And then actually, so it closed, it closed late. Right? And the buyer wanted to move in before closing, which is like, no, like you don’t don’t ever do it. I, I, I wouldn’t almost, know, I do have a different deal where we are doing something like that, but that’s a different, you know, high-price-point deal like this is, we just don’t do it, especially right now. There’s an eviction moratorium, a lot of people don’t even know whether you can get somebody out of house.

Because what if you let them move in and then, oh my God, they lose their job and now they can’t get approved for the loan, but now they’re living in this house, like that’s just nightmare fuel, you know, you don’t. We said, Nope, don’t move in. So it’s kind of a burden to him that kind of sucks, but I got to protect my seller, you know, at the end of the day. So anyway, we closed it, closed on time. After that, you know, they said, Hey, we need a couple more days. And they closed it when they said they would after that. And, and it went well, my seller made let’s see, I think $30k, somewhere between $30,000 and $40,000 you know, profit on that. His investment was, I think $18,000 is what he had to make a down payment for when he purchased it.

So he bought for 60… I think it was $66,000 or $68,000. We put about $35k close to $40,000 in repairs into it. And of course it sold for $169k. So after, after paying some of the buyer’s closing costs paying, you know, me, my commission and the buyer’s agent commission, he, he made out a pretty good check. And he didn’t even he was in New York the whole time. He lives in New York. He’s literally never seen his house. So it’s a pretty good, pretty good deal for him. We’re glad that we linked up with Gus up there our contractor, who’s got another job in progress that we’ll show you probably in the next video and he’s, and we’ve probably got another one coming up soon within the next week or two that he’s gonna start. So I think we got a good, good thing going.
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