How to Get Started Flipping Houses (Fix and Flip Tips)

what's going on everybody Jamal Gibbs welcome to another video so in a recent video I showed you that I bought a house actually I think it was on my Community page on YouTube I showed you I bought a house on auction.com and I finally closed on this house a couple weeks ago and right now I'm just going through the stages of bringing my contractors through and getting some numbers solidified we're actually starting this Rehab on May 6th it's going to take us 10 weeks to get it done I am using a different contractor so my guy who I use to get my 30-day rehabs done I got him with some other clients of mine some coaching clients and he's rehabbing two houses for them right now so I didn't want to pull him from those projects onto this so that's the benefit of being a part of uh my coaching program Deal Pro accelerator uh and I'll leave the link in the description box if you want to uh get some information on that but for right now let's walk through this house and uh I'll show you guys around let's get to it all right so if you guys remember uh in a previous video I walked through the exterior of the house show you guys the outside that's because I couldn't get into the house I didn't own the house yet uh but now I own the house so this is why I want to walk you guys through before we actually get into it though a lot of times when you purchase houses from these auctions or even auction.com for example um they don't give you a lockbox combo because they don't know it so sometimes you know after the closing you got to get a locksmith you got to break into the house sometimes you got to break the glass then replace the glass but in this case I actually was able to find um they was able to find the lockbox combo now this was hard to get because they didn't even have the combo they just had numbers written down and we was just we were literally on the phone going through all the four digigit codes that they had and uh one of them worked so you know we got we had some success with that but a lot of times when you buy these auction houses know you got to just break in the house after the closing of course that way you're not trespassing all right but going to shut that door first thing we're going to do I'm I'm going walk through tell you guys exactly what I plan on doing in this house there's a lot of water damage in here so there's some things that we got to address but uh and you can kind of smell the water in here as well so um in this corner obviously we're going to remodel this room I'm not sure what this room was before maybe like a wreck room or something like that but we plan on there's there's a laundry uh laundry wash and dryer hook up on the other side of this wall we're going to move that into this room and remodel this room and make it look good and that way we can kind of separate it from the basement feel nobody wants to walk into the basement to watch their clothes right so we I'm just being mindful of that we're going to keep this as a basement we are going to fix the walls paint them and paint the floor in here but it's a basement there's only about some much we're going to do in here we are replacing the HVAC system so this entire unit this thing look how big this unit is man it's a dinosaur you don't even find them this big anymore right we're going to replace this whole thing Arnold Jones services I don't know who that is but yeah this thing is old um we're going to replace all of the plumbing we're replacing all of the electric um all of the duct work we're replacing all of this stuff so it's going to all be gutted out ripping out that kit clean up the basement make it feelable right now it's nice and dirty with a bunch of cobwebs all over the place but uh that's just a part of the that's just part of the business right got cast iron pipe over there we're cutting that out all of the sewage we're doing everything brand new in this house all right and as you can see what you guys think it feels like a basement right yeah feels like a basement cracks in the walls now normally remember in the last video um I was talking about the crack outside of this wall um that's not necessarily it was actually right here not necessarily a foundation issue after talking with the contractor it's just settling so what we got to do is just repair right here repair all of these cracks right here they not then not the size of my finger remember I said whenever there's a crack the size of your finger you you worry about it they're not even as thick as my finger so um um you know that's an easy repair we paint the walls we'll be good to go all right let's head on upstairs man there's a I don't like basements so we're in the kitchen right now um we're going to take all this out this is all shelving going to open this this space up right here um take out this fireplace nobody has a fireplace in the kitchen so we're getting rid of that we're getting rid of all of these cabinets and we're going get rid of half of this wall right here so we're actually moving uh the kitchen this way so it's going to be going that way and coming around this way and getting rid of that wall to open up the space all right so I think this house is too compartmentalized I say that right yeah yeah and uh feels closed in so we're opening up the space giving it more of an open floor plan this this the entire kitchen is going to be brand new um and yeah I'm excited to get it started let's go to the next room every time I walk in this house I feel like I'm catching an allergic reaction you see it's fur all over the place and there something in this house at least they had a dog or a cat I don't think this cat fur though this is definitely some dog fur I feel like I catch an allergic reaction when I walk in cuz I'm allergic to certain dogs certain hand movies in general um so what we're going to do right here open this wall up it's about right here create uh a a open floor plan in this entire room this whole thing right here is coming out we're cutting it about right here along this line and creating kind of a bar um going across with a nice countertop and it's going to look directly into the kitchen when you walk into the house okay so that's what so all of this is going to be taken out it's going to feel more open in the room I was initially going to get rid of this whole wall but we came up with a better idea I'm going to share that share what that is with you in a second we are going to cut this down to the wall because this is just extra extra space there's nothing behind this so since it's taking up space we're just going to um Square it off and uh and just leave more space in the room so this is going to be the big living room my realtor said I should leave these two doors and I'm like this ain't the 1960s so we're going to knock this whole wall out we're actually going to open it up to about right here and we're going to open up that side about the same so it's going to be more of open feel so it's going to feel like a bigger living room when you walk in there's a Foy out here so uh if I walk into the house this is all going to be part of the living room it feels Grand when you walk in and then like I said there was going to be something on the other side of that that uh that wall there let me let me share with so we're in the foyer this is naturally going to become part of the living room once these doors are removed and the walls are opened up right but now there's a doorway right here we're going to add a half bath in here so remember this is going right back toward the kitchen so what we're going to do is add a wall right here and then put a toilet and a sink of vanity in here so then this is going to be opened up the bath is gonna be right here and now we just added a half bath in the house all right so now we have the staircase right here uh but if we come to this side let me share something with you what we plan on doing closing this bathroom off and closing this room off right here we might even extend it out a little bit to about right here just build a wall right so that was another thing I was considering let me guys know in the comments what you think I should do with that and then add the doorway right here but if not we'll just use this doorway uh if we if we add the doorway right here all of this is going to come out but if we add the support beam right here the room will start right here but I I kind of like the space that we have so I do like the idea of closing this these two doorways off and using this as the door here's why let me walk into this room so what we're going to do is take out this entire closet so it's going to open a room up it's going to feel a lot bigger in here and then this wall we're opening up a nice pathway into the next room right so it's going to be about this big right and once we open that up let me show you in the other room this is going to be the master suite on the first floor we're going to take half of this room we're going to add a doorway right there into the bathroom and then we're going to take about this much of the room and create a walk-in closet so now you got the pathway coming into this room you got the doorway into the bathroom and then you got the the walkin closet right here I think it's going to give it a grand feel when you walk into the into the massive Bell in the bathroom it it's a mess right now we're taking out the uh the uh tub we're just going to have a shower in here a toilet and a sink the the tub is going to come out and we are moving the shower to where the tub is as well all right so now what I want to do is show you guys upstairs and show you exactly what we're going to do now the good thing is you know Anthony was just talking about it you know I bought this house as a four bedroom and on the tax record it says four bedroom too bad but we had an extra bedroom that's how I was able to take two bedrooms and combine them into a big Master Suite now upstairs is three bedrooms and I want to show you some things upstairs going to be really basic I just want to show you some things that we we plan on doing upstairs um that's going to uh help us enhance the house but there's also some draw backs upstairs as well so let me show you all right so this is the first bedroom when you walk upstairs here's one thing I don't like about the house and this is something that I would have never known had I not bought the house and actually walked in the chillings are really low now I did talk to my realtor and she said they're actually legal height so I'm not going to have a problem putting a house on the market for what I intend to sell it for which I'll share the numbers with you guys in just a minute but this a basic rehab in here going to rip up these floors you know rehab this closet rehab the room in general instead of this hanging light from the ceiling we're going to do recess lighting up here because I feel like these bulky lights are taking up space and I think recess lighting will be better up here because the ceilings is so low so let's walk into the other bedrooms all right so this is the second bedroom and again this is just a basic rehab you know uh we're going to tear up the floors paint and carpet know change out the doors and all the stuff that matters uh and just like the other room recess lighting the ceilings are pretty low uh we do have a nice hallway right here as well it's a little dark we don't have electricity on in the house just yet but um I'll take you into the other room and show you the bathroom and then we'll talk about the numbers when we get back downstairs all right let's go we could just thr B all right so I got the guys with me so we're in the last bedroom huge water bugs and everything else that you could think of in this house got to bomb this place but uh you know again just a basic rehab in this room um again the ceilings are low so it it makes the room feel smaller than what it actually is but to me it's the largest room up here um so yeah this is uh it's going to be a good rehab right here across is the bathroom we're just gutting that whole bathroom out and um this putting just making it feel new look more modern and uh just do a great job like I always do on these houses let's go downstairs I want to talk about some numbers with you guys I'm not sure if I shared these numbers on a previous video but initially when I bought this house um I was expecting to get $250,000 out of it I bought it for $18,000 I was expecting to put about 80 grand into it so those numbers is still true um I bought it for 118,000 I'm putting 80 grand it's actually going to be a little over 80 grand about 84 Grand into it all in uh we calculated the numbers down to a t obviously we didn't open up the walls we kind of accounted for that in the uh the rehab as well so 84 85,000 is about where we are on the entire house that includes the roof and everything else new everything it's almost it's going to be like new construction new sheetrock everything in this house $84,000 now here's the deal because I bought it as a four bedroomroom two bath um I I was able to get it for for 118,000 when I bought the house and I walked in we found out that there was an extra bedroom it was actually a five bedroomroom so I'm able to combine those bedrooms and make a really nice master suite and because of that because I have that extra space my realy tur believes we can get another $225,000 on the house so I'm actually going to sell it for 300 well we talk about $299,000 after I pay her $2,000 and I pay off a $200,000 loan I'll make $25,000 more on this house now generally I like to be at about a 15% profit margin on my rehabs but we're almost double that at this point so that's why you need to know your numbers when you go into to a property but let me know what you guys think about the house leave a comment in the comment section I'm going to have a lot of fun on this one it's in a great neighborhood still trying to get the house across the street I did tell you guys about that in the last video the lady we found out that the lady died in 2021 and the house is just sitting there right now we did speak to the cod's department about that so we're working on that if I can get that I'm going to keep this house if I can't get it I'm just going to flip it and uh if I get that one you know after the fact I'll just go ahead and flip that one as well but this is a great neighborhood close it's literally a couple blocks away from downtown Thomasville um great house uh right in line with what I thought the house was going to need that's because I know my numbers I've been doing this for 20 something years 23 years 24 years at this point and uh when you get that good at knowing numbers then you know that you're going to make a a profit every time you walk into a house but make sure you like this video subscribe to the channel click the notification Bell check out the Deal Pro community and also check out the Deal Pro accelerator program which is my coaching program I I show you how to do all of these things and we take your hands on approach with it all right so look like the video leave a comment let me know what you think about it I'll see you guys on the next one take care

Channel: Jamel Gibbs

Views: 1,313

Keywords: real estate investing, wholesaling real estate, wholesaling houses, jamel gibbs, flipping houses, wholesaling, wholesale real estate for beginners, real estate, jamel gibbs real estate, flipping houses for beginners, house flipping, how to flip a house, house flip, house flipper, house flipping for beginners, real estate wholesaling, how to flip houses, how to wholesale houses, getting started flipping houses, should i start flipping houses?, investing in real estate

Id: qbCMGs2wLRg

Length: 15min 52sec (952 seconds)

Published: Mon May 06 2024