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 followThe 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'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…
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…
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…
Every underwriting model I build for a heavy rehab now has a second tab on it, and I want to know if that's normal or if I'm adding work for nothing. Tab one is the flip. Purchase…
Reading a fixed-price gut contract from a GC and the allowances section is doing an enormous amount of work. Allowance for tile, allowance for cabinetry, allowance for anything be…