Lessons Learned on my Recent Flip
We are in the process of wrapping up one of the most enjoyable flips I've ever done. That doesn't mean mistakes weren't made and lessons weren't learned. This flip hit all of the check marks that I am looking for in a rehab project to take on. It was a cosmetic flip, built in 2007, got at a great price, and is one of the smallest houses in a quickly gentrifying neighborhood.
1. Buy Once Cry Once
Since this was a pretty simple project, replacing flooring, and countertops, moving a couple of walls, painting cabinets, and the interior/exterior. I pretty much handed the keys over to my contractor and did not keep a close enough eye on the project. I have a lot of trust in my contractor, mistakes happen but he is very good with what he does and is extremely honest, So all that is required is some communication about what is going wrong, So this is on me. What I overlooked was the laundry box, one of the hoses was left on there and I didn’t take any notice of it until we were in the process of setting up an Airbnb. I wanted to put fresh hoses for the washer and the only one was completely rusted on. I spent a full day using heat, oil, and elbow grease and it did not budge. Eventually, I cut it off. This of course meant I nicked the threads of the wall faucet, which means now I need a new one, which means a new box, which means cutting into the wall, which means additional mud work, texture, and painting. All said and done It ended up being 3 days of my time as my contractor was out of town and it’s a 45-minute drive to this property. The lesson here is to be detail oriented in each of the steps and to spend once at the right time rather than more times forcing you to repeat many steps and costs.
2. Shun the shiny object
In My last blog post, “Tips for a low headache project” Rule #5 was “Don’t get Caught up in Maximizing a Deal”. We broke this rule on this project. The object was simply too shiny. In this neighborhood, lots of houses are getting torn down and mansions are being built in their place. It’s 10 minutes from downtown Dallas and close to some Major city of Dallas’s long-term development projects. The long-term appreciation of this property is going to be crazy. However, my business partner and I have dedicated this season to building up marketing for more properties. We were missing the forest because we were too focused on the tree. We got distracted from the current goals and it costs us both substantial time and money in getting the Airbnb set up so we could hold. For this time in our careers we need to focus on acquiring new projects.
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