Hidden Iron House

Danny Johnson / 19 comments

This is the house I closed on last week. Already have contractor started. I got my contractor to give me an bid and also got a new contractor to give me a bid. The new contractor came in over twice what my contractor came in at. He asked if I wanted him to fax it over and I told him not to bother. He immediately came down half. My guy is getting the job and this guy knows to give me a good estimate next time. 🙂

I will give actual repair costs as they come up. My guy is doing the things in the scope of work for about $4,000. Carpet still needs to be bought and installed. Landscaping. We need a new complete AC condenser and I’m sure there will be other miscellaneous.

House Details

[Source: Bandit Signs]

This is a 2 bedroom, 1 bathroom, 907sf house that was built in 1995.

The Numbers

Purchase Price:$25,000
Settlement Fees:$1,400 (title policy, closing fee, insurance, loan fee)
Estimated Repairs:$8,000 (estimated 10k, but I think we can do it cheaper)
Resale Price:$70,000
Estimated Profit:$35,600 minus holding costs and selling costs

Scope of Work

Exterior.
• Replace rotted /damaged soffit/trim and rotted exterior wood .
• Power wash the exterior.
• Install new light fixtures in front and back (see material specs).
• Install new front door (see material specs – prehung and with new interior trim) with silver doorknob and deadbolt.
• Scrape, caulk and paint exterior trim and garage door (see material specs).
• Repair fence (replace any rotted and extremely warped boards and fix post in back).
• Repair mailbox.
• Haul off construction debris and trash.

Interior
• Remove carpet and haul off.
• Remove blinds and curtains throughout house. Install new white mini blinds in front bedroom and bathroom.
• Install new vinyl stick tile ($25 per 45 sqft at McCoys) in kitchen, pantry, entry, utility and bathroom. About 326 sqft.
• Patch all cracks and imperfections in walls and ceilings. Match texture.
• Replace rotted baseboards with matching. (about 40ft)
• Clean and secure air registers.
• Remove and replace door from bedroom to bathroom with new prehung door .
• Replace door trim where necessary.
• Install new bathroom vanity light and faucet (see material specs)
• Install correct light bulbs in bathroom and where needed throughout.
• Secure bedroom fan cover and remove stickers from windows and walls.
• Remove medicine cabinet and install mirror (sku will be given $50 at home depot)
• Remove towel rings and add silver towel bar above toilet.
• Remove trim around tub and patch the walls.
• Make sure all switch and plug plates match throughout the house. Replace broken ones.
• Install new white toilet seat.
• Check attic for debris and any open wire junction boxes or just anything that would not pass inspection.
• Install new chandelier in dining room ($69 at home depot SKU will be provided)
• Prep interior for professional painting (remove all nails and things attached to walls and neatly caulk and sand) Paint interior (see material spec)
• Install door stops, smoke detectors where necessary.

Material Specifications

(not much on this one – the prices may not be accurate as I haven’t checked with Home Depot in a while)
Paint Colors

Interior:
Walls – Realist Beige SW 6078 FLAT
Trim – Extra White SW 7006 SEMIGLOSS
Ceiling – Ceiling White FLAT

Exterior:
Trim – Tony Taupe
Garage Door – White

Bath Sink Faucet: Glacier Bay Builders SKU 247-368 $24.86 (brushed nickel)
Light Fixtures:
Exterior Light Fixture Black SKU 245746 $8.97
Chandelier for Dining Room SKU 884-272 Commercial Electric $65
Bathroom Vanity Light – Hampton Bay Brushed Nickel Finish 3-Light Bath Bar SKU # 837895 ($10)

Before Pictures




































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19 awesome responses to “Hidden Iron House”

  1. Simon Shih on

    Danny,
    I emailed you about some help, so over the next few weeks, I want to ask a series of questions with some background on my situation. I have been reading your blog for a month now and I see that you flip houses, buying all cash. I am not in a position to buy this way, but want to market as aggressively as you so. I do have pre-approval from a conventional lender and have enough cash for 20% down (required), with enough left over for repairs. My full time job affords me the ability to cover my bills and holding costs during renovation. Should I wait until I have a good supply of cash on hand before sending letters and setting up a “we buy houses website”?

  2. Bilgefisher on

    Danny,

    Gotta say, again I am impressed. All that work for 4k. I assume that doesn’t include materials, but still pretty dang good. Is this your go to guy or were you able to find him pretty easily?

    Jason

  3. Simon Shih on

    Danny,

    I just got approved by a hard money lender. Can you walk me through the process after you find a house you want? Do you out a contract on it and then take it to the hard money lender? If the hard money lender says it’s a bad deal, do you lose you earnest money?

    Simon

  4. Simon Shih on

    Danny,

    What’s the Sq Footage on this house? How many beds and baths?

  5. BOB BALDWIN on

    Good Solid Info !!! I”ll be signing up for your blog. Got any info re: Portfolio lenders ..who “sell their loans/mortgages”?

  6. Bailey on

    Danny,

    Why replace the carpet? Is there an odor? It looks in tact in the pic.

  7. Bailey on

    Thanks, Danny.

    Actually, when I saw the finished product, it made a lot of sense to change the color. I also found a course I bought a couple of years ago, and the same recommendation was there.

    B

  8. luke whitis on

    Danny,

    I’ve heard that replacing fences can be expensive. I recall from your scope of work you mention replacing rotted and extremely warped boards. From the photo this fence looks dry-rotted. Did you wind up replacing everything or will you be able to salvage most of it?

    Your blog is fantastic. Keep up the good work.
    Luke