In this post we will cover all the renovations in the KLD Homes Readington Rd flip. This home was a For Sale By Owner purchase. The owner could not keep up with the maintenance of the property. Home had fallen into disrepair with many major issues from the foundation to the septic sytem. This was not a paint and list type of rehab, nor was it quick. From start to finish the project took 12 months months to complete.
The old adage time is money is still very pertinent in the flipping industry. The faster the flip the lower the holding costs. Taxes and payments to lenders still need to be made during the renovation period. Making sure there is enough capital to cover holding cost is vital for a successful flip. The purchase of the Readington Rd house was a For Sale By Owner. The lead came across via Craigslist. After 2 weeks of negotiation and number crunching a contract was made. Do not discount the real opportunities that present themselves on Craigslist, it is still a viable source for investment leads and opportunity. From the first contact with the seller to close was 40 days. The actual rehab of the house took 8 months. The closing after completion also had a few hangups causing the total flip to take about 12 months. Even with a longer than average flip time profit was still made.
The Major Issues
The faulty foundation is one issue that makes most investors run. KLD Homes went ahead with the deal. Below are pictures of the foundation repair. The foundation project itself went very smooth. If a foundation is not fixed properly the house would not pass inspection. Floor sag and weighty floors are signs of foundation issues. Since the foundation had sunk and lost its structural integrity the basement floor had begun cracking everywhere. The basement floor was taken up and replaced. Along with foundation issues, there was also extensive termite damage that required a new sill plate, rim joists, new flooring joists, and new wall studs. The septic issue was a disaster and really slowed down the entire rehab. The key to a successful and quick septic removal is having a great septic engineer who understands the local health codes and how to work efficiently with the municipality. Also making sure to plan ahead with the amount of time it will take to get the septic removal and re-installation finished.
Other Structural Changes
The KLD Homes team added an extra 100 square feet, including another full bathroom. To create an open concept floor plan, a wall was removed and an I-BEAM was installed. The picture below shows how the entire side of the house was taken down and re-framed using an I-BEAM for structural integrity. All the windows were replaced, the house resided, and a new roof put on. Brand new electrical wiring, plumbing, and HVAC was also added. Insulation was updated and the house is now fully insulated. Other outside changes include two new driveways, new garage door, poured concrete steps along with general landscaping. Essentially the entire house was gutted and rebuilt.
Kitchen and Bathroom Remodel
Nothing in the house was salvageable and this includes the Kitchen and Bathroom. Both were gutted and given the KLD Homes remodel treatment. The open concept floor plan demanded a bright white kitchen complete with granite countertops, recessed lighting, brand new stainless steel appliances, and a giant center island. The bathrooms received similar treatment; granite counter tops, mosaic shower tiles, and Smart mirrors to bring it all together.
The hardest part of this flip was the septic removal and installation which took an entire 4 months to complete. Due to established health code the planing of the septic removal was the longest part of the process. This is why finding an experienced Septic Engineer is pivotal. The foundation repair was also tricky but finished quickly in comparison to the septic tank. Every rehab is a learning experience, whether it’s your first or your last. Each comes with ups and downs, but the key is to see it though. Always make sure you make your payments to lenders, and deliver a solid house.