<p>I seem to always get the costs of plumbing and electrical way too low. </p>
<p>I try to use numbers based on previous experience. And then I add only 5% contingency for issues that come up. If it is a really bad house in poor condition, I will add 10% contingency. The problem is that it is so difficult to make offers or bid at auctions against other investors. So, I always think ‘just this once everything will be OK’ and really sharpen the pencil so I can possibly buy something.</p>
<p>In reality… making profit of X is better than sitting around and not buying anything and then making a profit of ZERO It’s the way I make a living for my family (husband disabled) so I just have to keep chugging along. I used to have a home run ($75 to $80k) every three or four, but last home run was January 2013 and that was only $65k.</p>
<p>I watch Flip or Flop and they go into their properties thinking they can remodel the house for $30k but in the end they spend the same $50k or more that I do. But, then they just adjust their sales price and go for more money. I never get that lucky to arbitrarily make up a sales price that will generate a profit. Reality doesn’t work that way.</p>
<p>I am pretty good at estimating kitchens and baths and flooring/baseboard costs. I’ve gotten better on estimating demolition and trash fees. But I just keep blowing it on plumbing and electrical.</p>
<p>I think that on Flip or Flop, they do charge at the top of the market, but they have also renovated with first-rate products and a first-rate design, so they seem to be able to get away with it.</p>
<p>I think it would be interesting to know their addresses and research exact buying costs, sales price and how long they are on the market. I did that for the San Diego flip show and it never matched what they said on TV. I also notice that most of these guys only seem to have one season. In this business its not really beneficial to get well known. Better to lie low. The guys on the courthouse steps are very secretive.</p>
<p>A few of the TV show guys use the show to get a name and then they do Get Rich in Real Estate seminars. That’s where the real money is. That’s what Armando (probably broke by now) and Stan Merrill (in San Diego now) did. I think Stan Merrill is still going, he’s got a big company now FortuneBuilders.com</p>
<p>I just finished loading some final pictures that my D took with her fancy camera. Since the house is not going up for sale we don’t need good marketing pictures, just some photos. I’ve loaded them up to our Flickr group. </p>
<p>Our last details are done. We painted out some of the detail in the front of the house and we had to build a custom broom closet to the Buyer’s specifications with lighting and an electrical outlet 42" high off ground. </p>
<p>These photos will show the final wood restoration, with the baseboards back in place and everything varnished with 3 coats of Satin. Note that the windows are still not matching in Living Room - waiting for the replacement.</p>
<p>cb, it looks beautiful! I must admit that I agree with the buyer about the double-hung windows. They look better without the grid pattern on the top.</p>
<p>She went the opposite. I ordered the grid pattern and she does not like the grid pattern with the wood strip across the middle. Says it makes the grid pattern look weird. So she paid to have me go back and order the clear plain window tops. I prefer the grid pattern myself.</p>
<p>Yes, I’m out hunting again. Should I start a new thread for #3?</p>
<p>Update on the Spanish Bungalow… Per mutual agreement the Buyer withheld the extra $6k that was the tally outside of escrow for her additions to scope during the project. The reason it was withheld is that we closed escrow before completion and I was still waiting for the replacement window.</p>
<p>I ordered the clear glass replacement windows and they both came in. When we went to install them, one had cracked glass. I was pretty sure we damaged the glass by storing the window in the garage but my guys insisted it was cracked during shipping. So I dragged the window sash back to Home Depot and told them it was damaged. No problem, they would order a replacement. This was back in late May. </p>
<p>I called one week later and the guy said “Oh, lucky you called. I just called the manufacturer and they are holding the order because a form wasn’t filled out” New delivery date June 23. Well, I was leaving for family vacation so I called again twice to confirm June 23 and asked them to hold window until my return. I returned on July 4 and, of course, there is no window and no one can do anything because it is a holiday. On Monday July 7 I call again and they have to get in touch with the manufacturer. At the end of the day I get the same story… manufacturer hasn’t processed order because a form needs to be filled out. OMG!!! I have $6k riding on getting this stupid window into the house. I raised holy heck and now I might get my window by July 23. Saga continues</p>
<p>Meanwhile, I went back into the house the other day and the Buyer stripped down the original living room and dining cabinets and restored them with new varnish. They are just gorgeous. But then I walk into the kitchen to put some keys in a drawer and I see little yellow sticky notes on every single kitchen cabinet. Each note had some issue like “bad wood join” or “hinge adjustment”. I see trouble brewing about this. Most of the issues are manufacture issues, she has unrealistic expectations on the quality of the cabinet manufacture. </p>
<p>I am out hunting again and have already made some offers. It’s going to be very very difficult this time because of limited inventory and a lot of investors fighting over the few properties.</p>
<p>Should I start #3 thread, or are we done with following the saga? It’s just not as glamorous as watching the shows on TV</p>
<p>coralbrook - I love following your threads and seeing the pictures too. I am very interested since I live in the same town as you do and know the neighborhoods you are buying the properties in.</p>
<p>Avid lurker and fan here, coralbrook. I can imagine that it took quite some time and energy to create your posts. Want to sat thanks for the great threads and pics. </p>
<p>Agree with the others - new thread. Your posts are one of my favorite parts of the Parent Cafe and part of why I didn’t go away when CC “upgraded” the site. Ready to follow the next adventure and appreciate your willingness to share!</p>
It’s the way I make a living for my family (husband disabled) so I just have to keep chugging along. I used to have a home run ($75 to $80k) every three or four, but last home run was January 2013 and that was only $65k.</p>
Hope your window issue resolves soon without additional headaches.</p>