We bought 1701 Mikan in July 2020 as a rental. There was a tenant already in the house, so we left it alone. The tenant, unfortunately, stopped paying rent and we had to move forward with the eviction process. Once they left, we decided with the market being so hot, it would be a great time to flip it. The house was in rough shape, but nothing too extreme. The main thing the house needed was a facelift, so we went to work!
Our market is in desperate need of houses under $200k. Worst case scenario, if it didn't sell, we would turn it back into a rental. Of course, we were putting money in and using nicer materials than we would for purely a rental, but we could always rent it out in the end. So after considering these factors, we chose to flip it!
Step one is ALWAYS comp the home to see what the homes around it are selling for. It HAS to make sense. If you don't know how to comp homes, learn before you start flipping. I've seen people list homes for well over their worth simply because they put too much money into the property and now they're desperately trying to get their money back out. These never end well, they either sit on the market forever or don't appraise. To avoid getting yourself into a situation like that, the home you're choosing to flip MUST be undervalued.
Now, keep in mind, this is our formula for never ending up stuck with a nice house we have no use for. Other people may do things differently, but these methods are what we find safest and best for investing purposes.
We bought Mikan from an investor for a very good price. And still, the price wasn't good enough, but we reached a number and made a deal. I actually begged Colt not to buy the house but he thought it would work out well. It absolutely did not at first... but now we have a great home to flip so it worked out in the end!
For Mikan, we saw the homes within a 1 mile, even 1/2 mile radius, had solid comps but none were as nice or updated as we were about to make ours. I knew that because of the price point, neighborhood, and location, the home had to be very practical but prettier than the others in that price point.
The house was clearly pieced together by someone who thought they could do handyman work but then got bored and moved onto something else. So it was a lot of undoing and redoing. In the kitchen, they put the oven into a closet and built fake stone around it (why?!). We tore their whole contraption down and made that space into a pantry. This opened up the dining area SO much.
They also had a fish tank (water, fish, and all) levitated by wood posts in the house about 10 feet in the air... again WHY.
So we OBVIOUSLY tore that down (no fish were harmed in the flipping of this house)
And just taking that craziness away, made the whole space so much more open and we were really able to see how nice the vaulted ceilings were.
Know your clientele...
I knew that the clientele coming to Mikan was probably going to be first time home buyers, or a family of four looking for a nice place. We didn't over complicate anything. The home's purpose was functionality and needed to be practical. We used greys and whites to open the space and make it feel light and airy. We went with simple and clean but I wanted it to look elegant at the same time. I think we pulled it off!!
Market it well...
As a realtor, I know how to market a home. I also LOVE design so I staged the home just a bit to make it feel more homie. I put big pieces over the fireplace to draw attention to that beautiful corner of the home. Throughout the rest of the house I added practical things and plants (when in doubt use plants). Plants (even fake) give a pop of color that looks natural and not forced. We got professional pictures taken and it went on the MLS!
The home went under contract on the second day on the market. That's how you flip a house!
You can find everything we used below!
What we used:
Paint: Sherwin Williams Reprose Grey
Main floor: Home Decorators Collection - Luxury Vinyl Plank - Orchard Point Oak [Home Depot]
Bathroom Floor: LifeProof - Waterproof RIGID CORE Vinyl Title Flooring [Home Depot]
For any other questions just shoot me a message!