Christina and Tarek have always made home renovation and reselling look a little too easy. Their projects in Flip or Flop episodes usually pulled off profits between $50K – $100K. The couple would buy fixer uppers at auction or foreclosures for $400K, and they would sell the remodeled versions for $600K. Their success could be attributed to the show, the seasoned professionals’ skill, or the growing housing market in Southern California.
Would you be able to produce the same results in Northeast Ohio? Here is a rough example of a possibility in the Ohio City (Cleveland) area.
(Click on the prices for source)
Materials Labor
-hardwood flooring
-bathroom floor tiles
-kitchen and bathroom wall tiles
-interior paint
-exterior paint
-kitchen cabinets
-kitchen countertops
-Windows
-roofing
-totals
$12,337 material + $25,300 labor = $37,637
list price $149,900 + $37,637 renovation + $3600 property taxes 4 months + $7000 closing costs = $198,137 break even point
This rough draft is lacking for several reasons. First, this list includes mostly cosmetic repairs. Because the house was built in 1895, there is a good chance that more significant costs could surface, such as plumbing, electrical, and foundation. Second, the listing doesn’t have any data for heating or cooling. Third, it might be more difficult to resell a multifamily property, so you could alternatively use it as a rental property.
You can check out Zillow for comparable houses for sale in the area. Below is a quick screen shot of the current market.
