Last night on Flipping Virgins season 3, Egypt Sherrod helped a couple flip a house in order to put money aside for their own house. Joe and Diana have a budget of $300,000 and while Joe is ready to do what it takes, Diana wants maximum profit without not doing a lot of work herself. Let’s see how this goes.
The first house they take a look at is in East Lake. It’s a two bedroom, two bathroom home that’s just about 1000 square feet. It’s listed at $185,000, but the after reno value of this area is about $310,000. This house is very cute but very cozy and the floors are bouncy and all slanted. There is a lot of structural things going on in this house. Egypt thinks that she can get this house for $170,000 and put about $60,000-$70,000 in and then sell it for about $310,000.
The second house they go to see is in Ormewood Park. It’s a two bedroom, one bathroom house and about 1200 square foot house. It’s listed at $225,000, but the ARV of this area is about $315,000. They start the tour of this house in the backyard and it is very big, but it’s on a major road. The inside of the house is in need of some updating and there are some water issues above the kitchen. The ceiling in there is all cracked and weakened. Joe goes up to the attic to check things out. It’s good enough for them to all head up and there are clearly some issues with the roof. Egypt thinks that she can get this house for $210,000 and put in $70,000-$80,000 into it which would include adding on a two-room addition, they can actually then sell it for closer to $400,000.
The third house they look at is in Decatur and it’s a four bedroom, two bathroom house and it’s just over 1300 square feet. It’s listed at $245,000 but the ARV is only $325,000. This house has been expanded with a garage that was converted into a family room and there are a full bedroom and bathroom downstairs in the basement. The bedroom and bathroom in the basement are only accessible from the back of the house. There is a kitchenette in the basement area too so it’s really a studio apartment. They would really like to flip this as a one family room though. Egypt thinks that if she can get it for $215,000 because it isn’t even a legal two family house. If they put $50,000 and then sell the house for $325,000.
After thinking about it, they have decided to go with the third house because there aren’t many single-family houses in this area and they are sought out for. This is what the house looked like before!
Gallery: ‘Before’ Flipping Virgins Photos
They ended up getting the house for $217,000, they plan on using $50,000 in renovations and add a $5,000 buffer. That puts them all in at $272,000 and their ARV is $325,000 which leaves them with a $53,000 profit. Demo day started off with the kitchens in the house and then after some more demo from Egypt’s team, she found something that needs to be talked about. After walking them through the entire house and giving them all the good news, she brings them back to the bad news.
The bad news is that the steps they need to go in don’t have enough clearance so they have to put them in an “L” shape. Joe starts to freak out a little bit, but Egypt tells him that moving it would cost $6000 for the stairs. She does explain that this involves getting a new HVAC system for $1500 instead of moving the existing one which would cost closer to $3000. They can save the additional $1000 ($6000 minus the $5000 buffer) in some DIY and sweat equity. After talking this through, Joe is good.
Egypt and Diana work on removing some leaves from the yard to save some money and Joe is pressure washing the outside of the house. The next day, Egypt calls them over for the big moment when the hole for the stairs is cut out. Joe wants to help with the cutting, but Egypt tells him that’s probably not the safest thing, but he can head downstairs to start clearing debris. After that, Joe and Diana start painting some cabinets and other DIY projects.
After the stairs are put in, Joe and Diana check out the new downstairs area. Egypt shows them the new laundry room, the space for a rec room or sitting area. Egypt talks about doing an accent wall in that room with some reclaimed wood. When they get back to the house, the new tiles in the bathroom are being put in and Joe and Diana are getting some projects. Joe is cutting some wood and building the banquette while Diana is downstairs putting the accent wall up. She was a little nervous about this because she has never worked a nailgun before, but she did it.
After some finishing touches and decor, it is Open House day! This is what the house looked like after!
Gallery: ‘After’ Flipping Virgins Photos
They bought the house for $217,000, they only ended up using $47,000 after saving everywhere they could with DIY and sweat equity which put them all in at $264,000. They are listing the house at $335,000. Egypt does the Open House and after being on the market for a month, they have an offer. The offer was for full list price, $335,000, but they would like $3500 in closing costs. Which still leaves them $67,500 profit. They accept that offer. Let me know what you think of this flip in the comments below, on Facebook or on Twitter!
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