The WI-2 House is getting sold today, and it wasn’t until this morning that I wrote my (hopefully) final check. We had some last minute foundation drainage issues that were exposed after three solid weeks of pouring rain — luckily, my foundation guys were able to get in there on an hour’s notice, and spent a day busting up concrete in the basement, fixing the issue and getting new concrete poured.
Here is how the final rehab numbers look:
We went about $12,000 over budget, but much of that was due to the decision to do some extra upgrades. As we were working on the project, our real estate agent kept revising the resale value upwards as houses in the area continued to sell for higher and higher prices. So, we decided to ride the wave and attempt to sell at the top of the market, which required a few extra upgrades.
Could you expand on the $700 for “Radon test & system” ??
Also, a well ?? I thought this was an established area…..
If nothing else, rehabbing is full of surprises.
Thanks.
🙂 -> ” area continued to sell for higher and higher prices ”
Congrats on project #42
Hey Dennis,
High radon levels are fairly common in this area, and most buyers will do a radon test as part of their inspections. When we sold The WI-1 House (which is just a couple houses down from this one), the radon levels were high, so we were proactive about doing a test on this one ourselves. When the levels came back high, we installed a radon mitigation system (basically, a pressurized pipe that goes into the foundation floor and directs radon gas out of the house so it doesn’t accumulate in the interior air). That was $700.
As for the well, this is a very established area, but many of the houses are 60+ years old, and while there is availability of city water to many of the houses, many of them remain on wells. This one was still on a well, and we chose not to connect to city water. The new buyer can do that if they want to.
Thanks Ramon!
Can you give a little guidance on how you got comfortable with your budget numbers in general? I’m curious if it just came form experience over time or from some other source. I’m trying to get comfortable with the numbers on my first property and it’s very difficult.
Hey Jake,
It just takes a methodology, experience and practice. I’ve actually written a book on the topic:
http://www.biggerpockets.com/flippingbook
Check it out!