Honk Your Horn House Flip Picture

Honk Your Horn House

Danny Johnson / 12 comments

Behold the ‘Honk Your Horn’ house (named so because the grandson of the seller was in his car honking the horn over and over again while we were signing the contract on the trunk of my car). We closed this one last week on Friday.

Contractor has started work and is doing the work and providing the materials listed below for $11,000. We will still need to pay my carpet guy separately for the carpet going throughout most of the house.

House Details

[Source: Website]

This is a 4 bedroom, 2 bathroom, 1400sf house that was built in 1985.

The Numbers

Purchase Price:$65,000
Settlement Fees:$3,379 (title policy, closing fee, insurance, loan fee)
Estimated Repairs:$15,000
Resale Price:$120,000
Estimated Holding/Selling Costs:$12,000
Estimated Profit:$24,621

Scope of Work

Exterior.
• Replace any rotted siding or trim (not including facia).
• Install 1×4 trim on bottom edge of siding around sides and back of house.
• Install new oil-rubbed bronze doorknobs and deadbolts for back door and door to garage.
• Install new light fixture for back porch (see material specs).
• Remove storm door.
• Paint entire exterior (see material specs).
• Replace fencing where rotted or missing.
• Haul off construction debris and trash (including junk in yard – but not the play gym).

Interior
• Remove carpet throughout house.
• Remove wall paper borders throughout house (including little trim pieces).
• Replace front door frame.
• Repair back of front door (sand and match stain).
• Texture any imperfections in walls and ceilings. Match texture.
• Repair sheetrock where necessary (including in garage) and match texture.
• Remove stickers from ceiling fan in ‘princess’ room.
• Prep interior for professional painting (remove all nails and things attached to walls and neatly caulk and sand) Paint interior (see material specs).
• Paint kitchen cabinets and install new hardware (11 pulls, 9 knobs) (see material specs)
• Replace kitchen faucet (see material specs).
• Run Dishwasher and report if working correctly.
• Replace light fixtures (see material specs)
• Replace interior doors with new six-panel doors and oil-rubbed bronze hinges.
• Replace interior doorknobs with oil-rubbed bronze (and strike plates).
• Remove all mini-blinds (keep 2” blinds in living room)
• Make sure all light bulbs are working throughout.
• Make sure all switch and plug plates match throughout the house. Replace broken /painted ones.
• Re-caulk around toilets and where necessary.
• Replace return air grill and install new air filter.
• Install smoke detectors where necessary.
• Replace all doorstops with oil-rubbed bronze doorstops.

Master Bath and Hall Bath
• Remove everything from the bathroom (keep toilet).
• Repair walls and texture.
• Tile floors (tile needs to be approved by owner before installation – assuming between $1 and $1.50/sqft for tile purchase)
• Install new metal, white tub, tile surround and install new oil-rubbed bronze trim kit.
• Install new vanity and faucet (see material specs).
• Install new vanity light.
• Install new oil-rubbed bronze hand towel, 24” towel rack and toilet paper holder.
• Install new framed-mirror (see material specs).

Materials Specification

Paint Colors

Interior:

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

Exterior:

Sides and Back Siding – Classical White SW 2829 SATIN
Trim – Tony Taupe SW 7038 SATIN
Front Siding: To Be Determined

Cabinets:

Color to be determined.

Materials

Bath Mirrors: Martha Stewart Living Mead 24 in. x 32 in. Framed Mirror in Espresso SKU 652509 $67
Bath Faucets: Pegasus Estates Oil-Rubbed Bronze Faucet SKU 666068 $89
Bath Vanitites: Master Vanities: Woodcrafters Del Mar 30” Espresso w/Top SKU 672-477 $199
Cabinet Knobs SKU 400389 $1.79/each (they are a little cheaper in the 18 pack)
Drawer pulls for cabinets SKU 803786 $2.39/each.

Light Fixtures:

Bathroom Vanity Lights – Progress Lighting North Park Venetian Bronze SKU # 552-400 $70

Exterior Light Fixture Black SKU 245746 $8.97

Ceiling fan for Living Room SKU 161-646 Hampton Bay Glendale $65 (make sure you get Oil-Rubbed Bronze).

Flushmount for breakfast area, kitchen, upstairs hall (2) SKU 720163 $15 Commercial Electric Oil-Rubbed Bronze (make sure to use at least a 60W bulb)

Owner will provide SKU for pendant light for over the kitchen sink.

Before Pictures

Check out that back yard. Now you really can appreciate what we are going through down here with this insane drought!































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12 awesome responses to “Honk Your Horn House”

  1. John Miller on

    Danny…. I’m just starting to get into real estate investing and will be taking a huge leap this week… for once. Love the site. Have finally caught up with all the weekly updates. Took a few days of reading. Read every word.
    Taking the Honk your Horn house, I have a general finance question. With a private lender, would you get $95000 from them for all costs? You get $25000 profit, what do they get? Where do they get their profit from?
    Thanks for the site. Will keep coming back to it dailey.

  2. Keith on

    Hi Danny,

    Love the site too, and just getting started reading every word. Can you help me back into the numbers in regards to where you say, “10% interest only monthly payments ($666.67 per month in this case)” I am playing with loan calc. online and I am not seeing it?

    Also correct me if wrong, but that property, if held for 1 year would be a 10% ROI, for the Money person? (which now that I think about the above statement is what makes it that!) But after playing with a ROI calc, and doing 6 months, it is 6% ROI for the investor. Is this correct what I am calculating and is this standard for a private money lender?

    Last but not least, did you post about how you obtain your financing, more specifically the how and what you/to say to the private money lender?

    Thanks again, can’t wait to consume more of this blog!

  3. Bob C on

    So, YOU provide the contract? Not the seller (as is traditonal.. around here anyway)?
    Would you post a copy of that online?
    Do you give the seller any kind of deposit? (I’m thinking that a deposit is necessary to make the contract legeally inforceable) I’m guessing the risk of losing the deposit is greater than them renigging on the contract and you “forcing” them to sell (enforcing the contract). Hmmm… But maybe THEY want a deposit so they know you are motivated to close.