The full-gut flip is the deep end of renovation, where the investor takes a property in serious disrepair, often down to the studs, and rebuilds it: new systems, reconfigured layouts, structural work, full kitchens and baths.
Log in to followDeal I'm modeling as a career changer, so tell me where I'm wrong. Tax card says 1,450 square feet. Tape says roughly 1,900, because at some point somebody finished a rear additio…
The exit-flexibility argument goes like this: if you underwrite a full gut so that the finished house also works as a rental at your all-in basis, then a soft resale market can't…
A few deals in and I've hit something I didn't expect. On my first two lighter rehabs I was at the house most days and I thought that was why they went fine. On the gut I just fin…
I run framing and finish crews so the construction side isn't the confusing part for me. The investing vocabulary is. I've heard people call a job a gut when all they did was rip…
Been building the list for eight months and this is the first one I'd actually chase. 1940s two story, 1,640 sq ft, vacant maybe three years. Knob and tube in the accessible runs,…
I'm being offered participation in a fund that does heavy rehab across a few markets, and I'm still figuring out how private money moves. Sponsor's pitch is that distressed invent…
Bought a 1920s four unit two years ago, all four occupied, all four rents about 40 percent under market because the previous owner never touched anything. Two units are 1 bed, two…
Career changing into this and I've got no construction background at all, so please assume I know nothing. There's a listing near me, 1,100 sq ft, 95k, description says "down to t…
Building my list and I've got the purchase side roughly understood. What I can't get a straight answer on is everything else. I see people talk about needing "reserves" and I don'…
I'm looking at building a service around gut rehabs rather than owning them, something like an owner's rep who runs the schedule and the money for investors doing two or three hea…
I've done it both ways and both hurt, so I want to see how this room splits. The GC version: you pay a markup, usually 15 to 25 percent on top of the subs, sometimes more on a gut…
I've done a few lighter flips, paint and kitchens mostly, and I've been using the 70 percent rule the whole way. Max offer equals 70 percent of ARV minus repairs. Worked fine when…
240 purchase, closed three weeks ago with hard money at 240 plus a rehab facility. 1962 ranch, 2,100 sq ft, previous owner started a renovation in 2019 and stopped. Half the drywa…
Three cosmetic flips in and I'm trying to step up to a real gut. On the cosmetic jobs 10 percent contingency was plenty, I never used all of it. Put the same 10 percent on a 100k…
Two operators I've been talking to model the same gut completely differently and I can't tell which one is actually more conservative. The first one models 150 days of carry as th…
I've been reading loan documents for a while now because I think I want to be on the lending side eventually, and I picked up a term sheet from a hard money lender to see how a fl…
Closed on a 2,000 sq ft foursquare at 186, ARV 435, budget 158. I've framed houses for years so I priced this one myself and I was confident about it. That confidence is most of t…
Working through the paperwork side of a heavy rehab before I ever fund one. Say 160k of rehab released over six draws, a GC with four regular subs plus a lumber and a cabinet supp…
Working out what my first deal actually costs and I've got a single cell that says rehab, with 140 in it. Someone in another room told me that cell should be three numbers, not on…
I'm about to close on my first rental but my brother in law wants me to look at a shell his neighbor is selling, and it's a proper gut. No kitchen, no furnace, back wall opened up…