In this video, I am showing you what a fix and flip house looks like BEFORE the repairs are started. This property was originally a rental property and when the tenant moved out, I decided to renovate the property as a fix and flip completely and list it on the MLS.
This house was purchased for around $30,000 around 6 years ago. After taking a look and estimating the repairs this fix and flip property, putting in a new kitchen, new flooring, new bathrooms, and new everything (which should cost $25,000 to $30,000), I should be able to sell it for $180,000.
In this type of neighborhood, I would rather fix and flip to sell the property than rent it again since the quality of tenant in this neighborhood will create too much wear and tear on the property. Generally, when a rental property gets as bad as this one, the estimate of the repairs required to make it rent ready were just $10,000 less than making it completely renovated – so it made more sense to renovate and list the property than repair and re-rent.
Another reason is because of the velocity of money. I could easily find another house in this same neighborhood for $60,000 or $70,000 which I could then purchase, repair, and resell just like I am doing with this property.