Flip - Post 10 of 10
Summary
Purchase Summary: The purchase was smooth and easy. We deposited earnest money of $5K with a promise to close in 4 weeks. During the escrow period, the seller allowed us to begin demo'ing the property 7 days early in exchange for an additional $25K of non-refundable earnest money deposit.
Renovation Summary: The renovation went according to plan, with only a few inevitable hiccups. Several include:
The dishwasher couldn't fully open because the standard-depth refrigerator was too big - we swapped it out with a counter-depth version and our problem was solved
The entryway flooring never fully leveled, despite our best efforts; still, the buyer wasn't deterred and didn't care
The slider door locking mechanisms failed on the day showings began and the contractor had to make an urgent repair
Sale Transaction Summary: As we completed construction, the market shifted and slowed quickly. Further, several competing properties were listed the same weekend as us - and at slightly lower, more attractive price points. Finally, we experienced our share of bad luck with buyers. Events in our sales timeline:
Listed for $280K on the MLS
Nearly went under contract for $285K before showings began
Went under contract for $280K after the first weekend on market; buyer got cold feet shortly thereafter
Reduced price to $275K after a weekend of no offers
Reduced price to $268K after another weekend of no offers; went under contract immediately thereafter
Negotiated $1.5K in inspection items
Closed on property for a final sale price of $268K
Final Results:
Gross Margin: $268K-$180K=$88K (target=$100K)
Total Timeline: 15 weeks (target=10-16 weeks)
Evaluation: Even though profitability didn’t quite reach its target, the flip was a success due to: the knowledge gained, connections made, and the investment still paying off.
A special thanks to our partners at Denver Property Flip, who oversaw the construction process.
The Flip Summary: Week by Week in Photos
Videos & addtl detail are available on the Week by Week Blog Posts here
Day 0: "The Before" Photos
The property was dated in almost every way, except for a furnace and air conditioner which were both less than 5 years old. The property was well maintained, just old. A fresh face lift would transform this property, incl. new kitchen, bathroom, flooring, interior paint, popcorn ceiling removal, appliances, doors, fixtures, and hardware throughout.
Day 1: Demo
All unnecessary components were removed and staged for disposal the next day in a roll-off dumpster. Kitchen cabinets, appliances, flooring, tub, and lots of drywall were included in the demo.
Week 1: Popcorn Removal & Stage Construction Materials
We completed the demo and removed the popcorn ceiling in most of the condo. We also staged all the construction equipment and materials for the project.
Week 2: Cabinets, Open-Up Kitchen, & Bathroom Tile
We installed new shaker kitchen and bathroom cabinets, opened up the kitchen pass through, added tub and tile surround, completed the "de-popcorning", staged a few more construction materials, and prepped the bedroom closet.
Week 3: Doors & Ceiling Skim Coat
We wired the kitchen soffit, installed doors, and added a skim coat to the ceiling.
Week 4: Counters & Appliance Delivery
We installed kitchen and bathroom quartz countertops, drywalled the pass through, and took delivery of our appliance package.
Week 5: Level Floor & Paint Prep
We leveled the entry flooring, prepped for interior paint, and textured the pass through.
Week 6: Paint, Flooring, Appliance Install, & Fixtures
We painted the interior, added LVP and carpet flooring, installed kitchen appliances, and added new light fixtures and hardware throughout
NO PHOTOS WERE TAKEN AS CONSTRUCTION WAS TOO BUSY
Week 7: Clean, Stage, Photos, & 3D Virtual Tour
Before & After Photos
We hope you enjoyed stepping into our fix and flip journey.
For more information, please contact us at bryan@gerhomes.com or at 720-334-6465.
We are Greenwood Estates Realty,
"The best real estate experience you've ever had."
