The Trifecta House has been on the market for about 5 days now, and we’ve gotten tremendous interest over the past several days, including our first two offers (which haven’t been negotiated yet, so I don’t want to talk about them publicly)…
In the meantime, I wanted to post my (so far) final budget numbers for this project. As you might recall, our maximum budget target for this rehab was $16,000, and by making some strategic decisions and doing some hard negotiation, we were able to come in a few dollars under budget; to all new rehabbers out there, this is the reason to have a detailed Scope of Work and budget upfront — the only reason we were able to hit our budget target so closely was that we did the upfront planning work to know how much we could afford to do.
Here’s the breakdown:
There may be some additional expenses down the road, depending on requests by our buyer, but I think it’s safe to classify this project as “on budget”…
Hey J…Good job on completing yet another rehab on budget! Looking over your spreadsheet, I noticed that in order to essentially put in a new kitchen, you only have $52 in materials. I am more than likely missing how you allotted the costs, maybe most of the raw kitchen costs are shown in “ALL FINISHING MATERIALS”. Could you clear things up a bit?
Hey Sean,
Yeah, sometimes it’s difficult to account for things in my accounting software that makes it understandable when I post the details on the blog…
For the four line items that under cabinets, all labor and materials were quoted as a combined price by our supplier, so while most of the costs are listed under labor, that actually includes the materials (the cabinets and countertops) as well. For example, we paid $1847 for the kitchen cabinets, which includes materials, delivery and installation.
That $52 was an after-expense for extra shoe-molding (just the material) for around the base of the cabinets. We purchased this ourselves (from the cabinet supplier) and had our flooring guy install it. Because I didn’t write the check as part of the cabinet work, it got broken out separately by my accounting software.
Thanks J. I figured it was something simple like that.
Hi J,
I know you took some time off from buying after the first time home buyer credit went away.
How is your market now?? Have you seen prices drop? Less buyer activity?
It looks like things are still moving pretty good for you.
Hey Matt –
Prices are still dropping a bit (surprisingly), but the buyers are back, at least. It’s getting more difficult to make large profits on a single flip in my area, but making a consistently small profit by doing very easy rehabs seems to make up for it.
How are things up there?
Hi J,
Things have slowed down quite a bit from the frenzied pace we saw pre tax credit and prices are falling some too. The five feet of snow we got over the winter hasn’t helped matters either.
I’ve found that there is still buyer activity and the right houses in the good neighborhoods are still moving pretty quickly.
I’ve gotten a little more selective with what we buy, and have been trying to negotiate bigger spreads to make up for lower prices and increased hold times.
Good job on your houses, they’re coming out great.