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How to Turn an Abandoned House Into $50,000 in Profit through Flipping
Abandoned to $50k B Y
D A N
K R U P A
I hear from investors all over the US
Should you buy a house in this
Then move on to the next step.
and especially here in Kansas City that
condition?: A project of this scope and magnitude
Our process:
they want to flip to gain capital and experience, but they can’t find a deal or the numbers never work out. Here is how our company, Rev Homes, turned this neglected, abandoned house in Gladstone, MO into $50,000 in profit in eight weeks. Acquisition: How can you find a great deal in a market this hot? The answer is easier than you think. Through networking, we have built our reputation, and people know we are always looking to buy distressed properties. We were called about this property through someone my wife, Michelle, had met and chatted with months ago. We tell everyone we meet that we buy properties, for cash, any condition, and close quickly. When the opportunity presented itself, we acted quickly, made a fair cash offer, and closed in under a week.
would scare most new investors. The water was not on. The sewer main couldn’t be inspected. Termites. The house was a mess. A family of raccoons had previously vacationed there. Where many investors see issues, we see opportunity. We have flipped over 60 properties, 11 BRRRs for out of state investors, six BRRRs for ourselves that our now our rentals, and 47 actual flips. Through education, mentorship, and a ton of on-the-job training, we have learned how to address any and all issues on a rehab and acquired a large network of investor friendly contractors. A lack of know-how shouldn’t limit a new investor. Many seasoned investors would be happy to partner on a deal of this magnitude or provide fee-based consulting services. The key in this market is to procure the property at a great price.
Safety and quality are paramount to Rev Homes, these two factors aren’t negotiable for us, and they shouldn’t be for any investor. The first step was to gut this house down to the studs and replace the entire HVAC and ductwork in the crawl space while also removing all of the excess trees over the roof and in the front yard. Next, a new roof and gutters were installed to prevent water penetration. Once the new roof was installed, we started demolition, reframed damaged wood and subfloor, and installed new windows and doors. We wanted to maximize the amount of liveable square footage and make the house as open as possible so we removed the partition wall in the kitchen and reconfigured the bathroom, moving the water heater out of the bathroom and into the garage creating more space.
