How To Flip A House For Beginners (Start to Finish)

we’re at his house flip here in Northeast Ohio Roman if you want to introduce yourself people may remember you from the last video we did together but you got a new property under contract tell me what we’re doing today absolutely hey my name is Roman I own the real estate business here in Cleveland Ohio we flip houses we rent houses we renovate houses we do it all so what we’re doing here today is I’m gonna show you my newest flip project and we’re gonna talk about the design aspect and what we’re doing on the inside of the property but quickly I just want to touch on how I purchased this this is actually an MLS purchase which means it was on the market for everybody else to buy I happen to be the first one in put a cash offer in on the spot and bam I got it like that so any one of you guys could have done it I just happen to jump on the opportunity so come on follow me Marco we’re gonna show I’ll show you guys some work that we already started and the design aspect of the property that we’re gonna be doing so follow me all right so you guys can tell I got some guys working in here wide open space we’re gonna repaint everything we’re gonna do a design piece right here on the staircase so we’re gonna do those cable ropes if you guys know what I’m talking about the cable ropes they’re very popular nowadays and you construction and modern design so this is very cool open space and we’re thinking about incorporating an accent wall somewhere we don’t know yet but not much to see here come on into the dining room and I’ll show you what we’re doing there as far as this dining room we’re gonna put an accent wall on that back wall almost like a shiplap sort of thing I know you guys seen that on HGTV so where a lot of this stuff is replicating and copying from what other designers what other rehabbers do so come on over here and I’ll show you the kitchen that’s what everyone wants to see a couple things in the kitchen you guys see we demoed it but I just want to touch on exact

what we’re doing so all the cabinets are torn out all-new white shaker cabinets are coming in alright this wall this was a half wall we tore the wall out it’s not a structural support wall so we’re just we’re not even putting the beam in here we’re just drywall and everything okay

now if you come around this side this is the most important right here this was a wall one thing that I do in all my designs and all my flips I try to open up the space so it’s so it’s you know it’s a wider open living space because that’s what that’s what buyers want so we tore the wall down right now the whole second floor is pretty much supported on this 2×4 right here but anyway we’re putting the support beam up here if you guys can see there is air duct air vents running through so we had to eliminate those you see all the electrical wires we had to rewire all that so when you tear tear open walls you’re going to encounter problems and that’s if you’re not an experienced rehabber you’re you’re not going to know what to do with that so we’ve done it before

tore it out rewired everything rear and everything and we actually put this air duct work into this wall right here and already all sealed up and closed up so you can tell okay so real quick

typically since this is the way I want to film this you guys is probably in a few different parts if you want to run through maybe like the numbers or how you evaluate these deals and sorry guys I’m like blinding Roman with this light I have to keep it lit here because we’re obviously in a you know unlit house right now what numbers do you look at when you look at these deals so I follow the 70% rule basically I purchased the house for $73,000 Murano or I can straight flip the other thing I look at is rehab expenses they’re pretty much set by square footage I know what my pains gonna cost I know what my floor is gonna cost all based on the square footage of the house and then a couple things like removing

couple of extra things we add on and then the biggest thing I look at is the big-ticket items okay the big-ticket items are basements foundational problems driveways roofs we check the Attic for mold so things like that things are that are gonna add to your rehab expense so that’s how I evaluate them let me show you guys upstairs that not not a lot to see there but if you follow me and I’ll show you what we’re doing up there excuse the mess

less than a week we work fast man so here’s what I was telling you guys I just want I just want you guys to see this when you remove a wall and you have to rewire the electrical work this is where the can lights are gonna go in you you see you see what we cut out the hole for the candle yep the kitchens right below us

this is the ductwork that we ran remember we removed it from that one wall and we moved into another wall so this is how it’s done we opened up the second floor second story floor we run them through the floors and dispersed it throughout all the rooms so make sure they’re all even and then the only thing I want to show you guys is the master so come on follow me so it’s kind of a mess if you could tell leaking skylight but it’s not a problem

we’re just gonna fix the skylight redo all the drywall fix everything up he’s going to look nice I want to show you talk about the design here so we’re gonna have a floating countertop all right not a vanity is gonna be a floating countertop shiplap on the walls all right

all black faucets and all black hardware and we’re gonna have round mirrors when it’s all said and done guys it’s gonna look fantastic it’s gonna look amazing like HGTV and then out of this

answer you have your your shower and then your bathroom we’re gonna put up what’s it called a barn door into here so toilet toilet shower yeah not unless you see there but the barn doors gonna be right here a rails gonna go up top barn doors gonna slide you know open and close the this section of the bathroom and what’s nice about this is it’s open into the master bedroom so and as you can tell everything’s prepped for paint we’re ready to go so okay so thank you for the tour that’s the first part of the video what I want to do is what is your estimate of what your ARV is your after repair value I don’t want to put you on the spot cuz we’re gonna shoot this video after it gets sold as well but what are you shooting for on this well I underwriting really conservative so 220 I say 220 but usually we sell for over what I estimated that and usually in this market right now we get multiple offers we get above asking price offers so I wouldn’t be surprised if this goes for 230 240 250 because this is strong as well it’s a class a neighborhood so nice very nice all right thank you for your time Roman I’m gonna cut the video here we’ll get to the next part once the rehab is done and then after that we’ll do post sale so thank you so much for your time today Thanks hey everybody week five so we’re four weeks after the first part of this recording Roman take us through the house let’s see what we did let’s do it follow me

first of all landscape and check it out painting as a garage door as you walk in here look at this beautiful painted everything look at the light get the light fixtures and we’ll look at the railing a little bit but I want you to check this kitchen out first remember there’s a wall here opened up a wall all new cabinets all new granite one thing I’m very proud of this is the first time we put up black and granite sink in a flip so kind of cool all right follow me into the dining room again new light fixtures paneling that we always do this is one of our

mature design pieces and then follow me through here as I show you this the railing cool I think it adds a very luxury piece like a design piece check out the bathroom

we always go with the dynamic colors so it pops out and all our hardware is always black so look at the faucet and the light itself

we always go with the black hardware it sticks out and then follow me in here and this is the thing that I’m the most proud of is the master so and the same thing here you know we go with the black hardware we go with the everything else is kind of white spray paint everything white but everything else is black snow and then we obviously incorporate a barn door these are very popular nowadays and as you walk in we got to stay in the shower and everything that goes along with that okay so time to rehab this for weeks about this we let we’re last year yeah okay I know we asked some questions in the first video it’s been about a month I may be repeating myself in terms of acquisition you found it on the MLS yes

in terms of underwriting you know are you conservative and your underwriting and how did how did you do all that absolutely super conservative you know with we didn’t know that the the what was coming you know but we still wrote it conservative and therefore everything worked out got it so that’s actually a very good point so we actually

originally filmed this before everything happened with you know the pandemic and quarantine and all that stuff however you’re still putting the house up for a price that you under wrote it for you’re not lowering that price correct no I’m not lowering the price but we like being conservative even if we did lower the price we would still you’re still in the black you got it okay cool so next video we’re going to come back here you just listed the property is that correct just went live got it okay if you had to guess how long you think it’s gonna be on the market you get a million bids isn’t gonna sit I know it’s a scary question but if you have to guess well historically all my flips sell within the first 24 hours just I mean cuz look at how beautiful this thing is and it’s a this is a very nice neighborhood it’s Strongsville Ohio a very desirable neighborhood Class A so yeah so a little salt quick got it cool all right so let’s recorded myself yeah but we’re gonna come back here the house is being listed he’s using his agent that he always uses if history is true I applied you back here in a week to see if they get an offer we’ll talk about numbers so stay tuned

thank you Roman thank you okay everybody this is week six not even week six how fast did this property go under contract dude less than 24 hours sold so his prediction came true based on his prior experience so some of my viewers they asked me on Instagram when I posed them the question of hey I’m meeting up with my buddy

you know what are some questions you have for house Clippers their number one question was what brings the biggest ROI in terms of house flips and then we can get into the numbers of you know what the house is gonna sell for or taxes things like that yeah good question so you make your money when you buy if you ever heard that term before if you buy the property right you and you will make money off of it but as far as rehab goes I think the biggest ROI is opening up the walls so we remove the wall in the kitchen

and made it a wide open space but other than that it’s all about your design and accent pieces yeah there was a wall right here so you got to do the grand that you got to do the shaker cabinets you know we we always stick with the black hardware and stuff like that you know if I show you the bathroom you’ll see that it’s it’s more modern as far as the design but it’s nothing like crazy you know it we still stick to the basics paneling vinyl for things like that so opening it up and then using creative design

would you say is not a good return on investment maybe things like if you don’t have to do the roof or you don’t have to do the landscaping you know stuff like that so like we didn’t do the roof on this one even though it was like 15 years old but it’s still good so that wouldn’t brought us good ROI and then like landscape but we only did the front a little bit kind of to make it look nice so stuff

I guess mechanical stuff that you don’t need to do that still works then you’re good perfect okay so let’s get right into the meat in the whole point of the video would you list it for would you sell it for and let’s talk a little bit about like you know financing and also maybe some taxes that you have to pay on these capital gains so listed for 239 we were competitive with the price BAM first day multiple offers it sold got bit up to 242 we accepted the highest and best offer at 242 and we’re closing on it very fast so BAM perfect so not too many contingencies or anything like that no contingent at all inspection one smooth the the buyers are very easy to work with got it perfect okay so if you don’t mind sharing these numbers you know what are we looking at in terms of short-term capital gain you bought it for X you’re selling it for the number that you just said you know what do you what are we working with so I actually didn’t calculate this is but what your viewers can so I bought it for 135 on MLS I put 32,000 into it and I’m selling it for 242 okay now you – the real estate commission cost and then a couple closing costs here and there which I projected be around 15 to 20 grand that’s the profit so it’s a substantial profit for a flip that took me six weeks we got it perfect so in about a month and a half you made X you know X of thousands of dollars now for the viewers that is considered a short-term capital gain you’re doing that in less than a year so in terms of like offsetting some of those taxes or some advice that you’d have just from an accounting standpoint how do you offset those taxes or do you just eat the taxes I mean as part of the game or

it is part of the game but if you’re a real estate investor you you have to have some rental properties on the side if you have rental properties they depreciate and they give you the write offs that you need to knock those capital gains down now also my flipping company that flips houses it’s an S corporation it’s not an LLC and the S corporation it’s taxed differently therefore you’re saving more on taxes and then also it’s an S corporation there’s a lot of business expenses that I write off so all in all sometimes I don’t pay taxes even though I flip homes got it because the that think is it right off this granite is a write-off you know all the remodeling all the materials the labor all those are right offs

yeah and even like you know your your phone you know that you use from business your car that you drive to check on your projects so we’re owning an S corporation there’s a lot of write-offs got it perfect okay so this would thank you so much for the

three-part series I know we met up three times to make this video but just any ending words for any aspiring home flippers or anything you want to end the video with yeah so yeah I’ll say this if you just sit there and you always think about oh I’m gonna do it with this and I’m gonna do that and you read books and you listen to podcast but you don’t take action you’re never gonna get started the you just got to go into it read some books educate yourself listen to some podcasts and take action and once you once you get that first deal done it’s a snowball effect

you’ll start snowballing you start buying rennolds you start developing business relationship with contractors real estate agents title companies you name it and then deals will start coming in and it’s a snowball effect and next thing you know you’re living the life that you want to live that’s right because they know you’re a player and they’re gonna they know you have the ability to close and perform they’re going to start bringing you deals at that point perfect all right thank you Rome and I really appreciate your time how can people find you any social media or anything oh yeah that’s right so you can find me on Instagram

roman empire dot CLE and then check out my website RS pro homes.com

and i’m also on facebook at the hashtag is at RS pro homes perfect thank you so much Roman

alrighty.

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