Latest / The Investor Shed Podcast / Fix and Flip Day 1
Transcript
- Nick Beveridge: Well, welcome back to the Investor Shed Podcast. I'm Nick Beverge, your host here with Jeremy Kitchen. Good morning. Good morning, Nick. How are you? Doing great. Yeah. Doing really good. What's going on? What's got you feeling so good today? yeah, I get to work today. okay, good. This isn't this AI podcast. We're not sitting in a shed today. Gotcha. we're we're actually going to be skipping the AI topic today and just talk about getting started flipping a house because why not? I just I just bought this house. We're gonna I'm gonna start flipping it. And it's day one. I have not done One thing to it yet, nothing. So I thought it would be cool to have a podcast where we just talk about what I typically do to start a house flip and what and what I do day one. I love it. Let's go. it may not be correct in what everyone should be doing, but I'm just gonna let you guys know what I do. Love it. All right. This will be fun. Thanks. And if anyone ever wants to get some free work, all you gotta do is start a podcast and then be like, by the way, we're gonna be doing our podcast at our flip. Hope you don't mind. Very clever. I like You're just catching on to this. I got on last night when you told me. Okay. But I thought you enjoyed the last time we did that at the time. Yeah, yeah, they're fun. Even though we were just sitting. Yeah. Today we're now sitting. Come check it out. Check out this house. Okay. So this is in Post Falls. And it's it this is what I consider the most ideal flip for me these days. It is just a like a house built in the nineties. structurally it's sound. There's really no drywall work to do in this house. It's all cosmetic. very little exterior work except for the yard and stuff. You can see the yard is a disaster. but we're gonna be focusing mostly on the interior. well, I'll we're gonna be focusing on what I do day one. but this flip, it's got a budget of about $35,000. I don't have any partners on this flip. So I have the right to not keep track. I can go over budget. I can go under budget. I can do as much of the project as I want to or I can hire it out. I kind of love these days, you know, being in that position of not really having the partners to have a clear plan from start to finish that I have to follow. Yeah. And I just like having the flexibility of even though it's probably not the correct right, perfect way to flip houses, I like having not a I like having a plan going in, but the ability to adjust my plans. Yeah. Yeah. Makes it nice. Yeah. this is before we start though, so like this is like what typically Nick calls your bread and butter flip. You know what I mean? Yeah. It's it's something, it's secure, it's in a nice location. Uh-huh. You know, it just needs cosmetic work. Yep. Single level rancher, it's not a manufactured home on least land or anything like that. Like, no, it's not it's not hard. Your formula is always like get a rancher in a good location that doesn't need a ton of work. yeah, a big buyer pool. So, like the when we're finished with the quick numbers on the house, I bought it for 330. it needs about thirty, thirty-five thousand dollars worth of interior, mostly interior cosmetic work. nothing major. The biggest thing is like the kitchen's gonna be ripped out and redone. and then the outside just needs bunch of, you know, loving touches, but it has a newer roof. Yeah. and it's got vinyl siding. Some of it's in good shape, some of it's not, but it's not gonna require ex a big exterior job. It's just going to be you know, touch up. Are you gonna hire a landscaper to do the exterior or we will see. I I haven't decided yet. So you haven't even started that with your plan? No. The only thing the only person I've contacted is my kitchen guy. Gotcha. Who should be here today or tomorrow or something like that to come get measurements of the kitchen. Technically I'm your kitchen guy. I mean like you are Jeremy kitchen. You're this you're the number one the kitchen guy. I called my number two kitchen guy. Yeah, yeah. And and he's he's here. he's he's the only one else, the the only other sub that I deal with that knows about this house that he's gonna be working on. Cool. and who knows, maybe it'll just be him. Yeah. I'll probably get somebody else to help with the flooring and some other stuff, but yeah, that's not that's not too important right now. What's important is day one, really getting a good idea of what the house needs. Right. And that's that's for me. I like to just spend the first day on the job side as as long as possible to really get a good sense of okay, what am I really gonna do with this house now that I've seen and touched everything? Yeah. I love it. Yeah. So do you have a scope of work already or is it I do? Okay, okay. Yeah. The scope of work is replace the flooring, paint the interior, change out all the fixtures in the house. And what I mean by fixtures is like the light fixtures, the plumbing fixtures. Yeah. and then the a new kitchen. Okay. The bathrooms are mostly good. the main bathroom really doesn't need much but a cleanup and flooring and paint. Sure. and the master bath, it it it's it's actually it's on the edge. It might need a little bit more sure than just now. When you say replace the flooring in this house, looking around at first glance, Nick, it it doesn't look that bad. It actually doesn't, does it? Yeah, like like with flooring, like there's no chips in it. I mean, maybe your moldings obviously if you clear Clean those up a little bit. or your trim. Yeah. But the the flooring doesn't look that bad. There is some scuff marks, of course, in the kitchen. I haven't looked anywhere else. This is kind of my first walkthrough as well. But yeah, this is LVP, right? I think so. And you know what? You might be right. And this is part of getting so when I the last time I was here through this house, there was stuff everywhere and dogs, and I just kind of assume that all the flooring needs to be replaced because it always does. But Jeremy's got a good point. Maybe a lot of this flooring is actually solvable. Like this one when you get into the bedroom. Yeah, yeah. This one doesn't. The bedroom floorings is different and kind of crappy. It's it's this has got to be replaced. It could work. Like it's in good condition. Yeah. But if you're trying to renovate it to the price point you need it at, Nick, I I do think maybe making the floors a little bit more uniform. Here's that master bathroom. the flooring in here is old, linoleum. I would replace this stuff. Because I gotta get a certain price point out of the home that requires a little bit nicer finishes. And that vanity should probably get swapped. there is something going on here. Maybe there was a leak at one point, so we'll have to go in the attic and s and make sure that was buttoned up well and fix up the drywall here. these kind of fixtures are just old, need to be replaced, but the shower in general is in good shape, it just needs to be cleaned up and swapped the fixtures. and the toilet the toilet looks like it's been replaced at some point too. Toilets can clean up really well, like they look new. and then but the doors, the doors throughout the house are in horrible shape. Yeah. So I'm gonna replace all the interior doors. These doors just suck in general. These like and and they're this yeah, they're the no panel, the flat panels. Yeah. it's just they just look outdated. And I'll be swapping out all the hinges and doorknobs for black. These doors are fun to punch through though. Yes, and y and we can today if we want. We can throw hammers at them. Yeah, they're they're they're followed, so they they punch real fun. We'll swap out the the older smoke detectors. And then so for light fixtures, Nick, what you're talking about, obviously you've got this fan in the living room right here. You're probably gonna be doing cam lights like right up here or something like that. Yeah, throughout the house, but maybe not that LED light in there. So these cans are actually fine where they are. I'll just be swapping out the light bulbs. Sure. And making sure that they're clean and they look new. Yeah. same with the things like these registers. I think a lot of these can be thrown in the dishwasher and and cleaned up well. And if not, maybe they need a coat of paint or just swap them out. they didn't really they definitely had dogs because this intake has been sucking dog hair for a while, but you can see up in there that they actually replaced the filter at some point because you can see the filter up there. Yeah. Which actually is a good sign. it's funny that they didn't clean the the little gate while they were at it, but whatever. But yeah, these these things just need to be swapped out. obviously you're gonna be painting this, I'm assuming or replacing this now that I'm touching it. Yeah, well if it's in good shape, we'll just nail it back down. Sure. And then paint over and it'll look new. You're gonna keep these windows? yes. So these windows are fine. Yeah. Just that tape you gotta take off. These films. Are just gonna come right off. This privacy film and then this window will clean right up. Cool. but there's missing screens everywhere, so I need window screens throughout the whole house. These are cheap things that you're talking about, which is nice. These are yeah, they're they're they're cheaper. There is one window in the master bath that I noticed that's got a crack in it and it's kind of harder to open like it's been broken at one point. So I'll probably have to swap out going back to the master bath again. Someone was rough with this bathroom, but there's a cracked thing here that's not easily fixable. Plus, the springs have kind of lost their give here. So this window is actually probably only one to two hundred dollars at Lowe's. Sure. but just swapping it out, you kind of have to be skilled. Right. so you kind of need a handyman to take it out and redo it. Or you just watch a YouTube video and you can do it yourself. That's true. I have I've seen if my brother can do windows, I can do it too if I want. cabinets in here. I'm assuming are you gonna keep these? No. No. Yeah, so the entire kitchen. So the entire kitchen's going away. And I'm doing that because the cabinets are gross, and it's the easiest way to appeal to a buyer is to have a nice, brand new, shiny kitchen. Yeah. And for only I was quoted about forty nine hundred bucks already for Brand new white shaker cabinets with quartz countertops, energy-level quartz countertops. Yeah, these ones are they're pretty ugly. This just feels like plywood, to be honest with you. Like it's it's not a real good and if you're if you're trying to sell a house for you know four hundred, five hundred thousand dollars, give the buyers a brand new kitchen. Yep. I mean, don't that's that's that's my point of view, my opinion. That's what goes through my head. Maybe it's not the perfect advice for everybody, but good god, if they're gonna spend their life savings and spend the majority of their income. Give them a nice kitchen. That's all anybody wants. And it doesn't cost much more than a regular kitchen. Yeah, so we can hit this little button right here, which is hidden. Cool. So the door opener needs to be swapped out because it's missing the little thing there. Nice button. actually the only drywall work that I've seen that needs done in the house is in the garage here. And the reason why you would want to do this is because it's a code item. Mm-hmm. because it shares the space with the, you know, need you need a proper firewall there. So this will be just like cut out and replaced, pretty easy, pretty easy drywall patch job, and you don't need to finish it perfectly. You got your hot water heater in there. Yeah, so water heater and furnace in here, and you can see that the furnace was updated at some point. I forgot what year, but that's that's not an original '90s Goodman. And this was replaced at some point too. it's nice to We have gas powered appliances everywhere, so this is going to be a cheap energy bill for whoever lives here. Yeah, free s free snow shovels too. That's always a good thing to find off. Yeah, almost always with flips, you'll end up with like yard equipment and brooms and stuff and snow blowers. there's a snowblower, sure. Yeah, there's always some goodies that you tend to get with houses that have issues. Not everybody always takes everything with them. You know somebody wasn't taking care of their house when they have roots growing out of their drive out of their driveway. This is cool. it's like a little weeder. What is that? weeder. okay. Yeah, nice. Yeah. Little batter powder. Yeah. Score ran. So a little bit of cleanup needed in the garage, obviously. and might even swap out these doors too. since we're doing all the doors. Even though it's just a garage, we we we want it to look and present a little bit better. Right. At least I do. What you don't want obviously is you don't want to skimp on like one of these little things where a buyer comes in and's like, clearly he skimmed on not doing a door right here. If they get that like feedback in their mind It just looks gross. Yeah, it just looks gross. Yeah. All right. So they left us washers and dryers. Nice. That's kind of nice to include with the a buyer. So hopefully they work. I'll test them out. If they don't work, I will throw them away and not include them with the house. Right. because what the last thing you want to do when you're reselling the house is try to pawn off appliances that don't work, right? Yeah. and speaking of appliances, I'm going to swap I'm not gonna try to save anything here. They're white, they're old. I just know I need a new stainless steel dishwasher. Yep. We're gonna need a new sink. Yep. We're gonna need a new gas that you can tell if something's gas when they have these little crates on them and stuff. in case you're not that familiar with these things, but you gotta be careful when we're taking this out, not to you know, rip it out. You gotta turn off the gas and stuff. so we'll be doing that. And replacing that with a gas stainless steel stove. Which is about the same price as a regular electric stove. Cool. Yeah. so here's here's actually the my pre-day. Before I got started, when I found out that there are keys available and they're hidden on the property, I went and got the key. And at my house, I have the shelf where I have the stuff for flips. I've got lockboxes, first aid kits, that kind of stuff. So I brought a lockbox right there. Nice. and then I also brought a first aid kit. And I usually just hang them somewhere on the wall. I know I'm a nerd I'm a nerd, but anytime you ever have people working on a house. They always get injured. Dude, yeah. Like every time I work on something, I'm always like getting cut with a razor or just like something happens or I'm like, Wish I had a band aid. Yeah. so having a first aid kit is kind of a necessity. If if you have anybody working, including including yourself, just have one available because if you're you're ripping stuff out or if you're repairing things, you're always going to cut yourself some somehow. Yeah. it just it just happens. Look at a contractor's hands and you'll see the FS. That's true. Yeah. okay. Next what I like to bring when I actually start, not nothing too crazy except for the dump trailer out there. We didn't show that, but there's a th this pod is not mine by the way. the sellers left it here, they'll pick it up tomorrow, so it's kinda in the way, but it's not hugely in the way. This is what I brought here. I still think the dump trailer is one of like the best investments you've ever bought for your thank you. Yeah, and it gets used all the time. Anytime I I don't really I don't have a place to put it at my house, but it's always being used on either a job one of my job sites or a friend's job site. And if you want to become best friends with anybody, if you have friends with contractors and you just let them use your dump trailer, they'll they'll happily use it and they will owe you favors. And it's one of the best ways to if you're in this industry. b get on people's good sides just, hey, I've got a dump trailer anytime you need to use it, then I'm whenever I'm not using it. Yeah. 'cause they just get used constantly. I've owned it for nine months now. Uh-huh. I think. And I've never had to keep it outside my house for more than like two days. Nice. It's just always somewhere being used. I thought you had it for much longer than that. it's probably no, I think I got it last fall. That must have been like the not just must have been Sean's dump truck that we worked with like on like Violet and yeah, yeah. So that was Sean's. Yeah. Yeah, I bought my own. Okay. So I bought my own last fall because I was using my brother's for like 10 years and I owned him 10 years of favors. so I've I also return the favor now to Sean, like because he's he's doing a bunch of roof jobs, and he even though he has an own trailer, he's always always in need of a second one. because he has multiple sites going on. So Jeremy's already getting started. On day one, I like to bring simple things. contractor bags. These I would get don't cheap out. Yeah. Get the big box of 42, especially if you're even if you're only doing one house flip, you'll go through I I swear. That is the one thing definitely, like you will always need trash cans bags. You know what I mean? Like there's just always something to throw away. Even if you think you're done, like the last few days of cleanup, you're like, there's just way much more thought this stuff than I thought. The majority of a house flip job is throwing stuff in the trash. Yep. That is seriously, that's like half the job. And then taking that trash and throwing it into the dump truck. Yeah. And then you bring in more materials, but those materials come with all kinds of stuff, like boxes and packaging and all this stuff. And it's just more stuff to throw away. Yep. so you're just constantly throwing stuff in the trash and cleaning up on a flip or a remodel. brought the a can, trash bags. I I brought my basic bag of just you know, an impact drill with extra batteries, a regular drill, all regular tools. I like to bring a plenty of different types of hammers. Yeah. Different gloves. I didn't bring anything to there. Make sure you you have at least a couple different tape measures around because you're gonna have to get measurements to figure out what you need for where later, you know, measure all all the doors and all that. Do you want a couple different measures or do you want a couple of measures of the same cause like different measures do different things, you know what I mean? Like usually usually have in the same brand so they feel the same with the measurements. Okay, you're getting two in the woods. Okay. Don't do that. But I'm just talking about just getting basic measurements of like, wait, what size doors are? Okay, this is a thirty. This is a thirty. This is a twenty-eight. This is they're not gonna be off by two inches. Right. But I just mean have an extra tape measure so you don't have to like run to your car. Cause you'll leave them at places. I just have extra ones all over the place. Yeah. that's me anyway. I I tend to lose them. or people grab Yep. I have plenty of razor blades. Yep. you'll be using these quite a bit. To get everything out. and yeah, there's other things, but we don't need to dig through them. for actual real demo, like the sledgehammer in HTTV that goes well together, but in real life, nobody uses a like a sledgehammer to actually demo anything. No. I do have this is like stuck down here. This is probably the closest thing. This is a mini sledge, which I I do use here and there when needed, but You're just gonna cause more of a mess when you're using a hammer to try to demo stuff. the best way to demo things is right here. Yep. This and these pry bars if you need them. And most of the time you don't even need these. Most of the time you're just unscrewing things and pulling things out nicely. Yeah. or if you're getting trim out and stuff, these or the little guys. Yeah, the little guys are nice too. So this is about all you're gonna need for the first couple of days of. flip is pretty much just this right here. Cool. yeah. So why don't we get started, if you don't mind, on the kitchen. Okay, let's do it. And we'll just start taking stuff out of the kitchen, bringing it to the throwing it in the dump trailer. Yeah. Nick and Jeremy, keys in hand, post false project, fresh game plan, cabinet doors come off the frame. One more fix and flip in the game. Measure twice, then loosen that screw. Dust on the sleeve, but the view looks new. Stack it up by the trailer outside. Kitchen's getting a whole new ride. Piece by piece. Make a little more room. Out with the old, if the next thing go. Load it up, take it away. This house is changing by the end of the day. Draw slice weak, like they got a lot to say. Nick keeps moving all in the day. Jeremy's got a sledge in the frame. That door's about to lose this game. One big swing and the panel takes flight. A little too dramatic, but the timing's right. Everybody laughs and they clear the way. Another old fixture won't be staying today. Piece by piece. Make a little more room out with the old, let the next thing go. Take it away, this house is changing by the end of the day. Trailer's fillin', the piles getting tall, cabinet bits headed out one and all. No fancy speech, no brand display. Just good hard work and a brighter sunday. Then the floorin' starts to lift and curl. A strip comes loose, there goes another little whirl. Nick pulls it up, keeps rollin' along. No sign off needed when the works the song. Piece by piece. Make a little more room out with the old at the next thing, bloom, load it up. Take it away, this house is changing by the end of the day.