My company just bought real estate to repair and turn over in Seattle, but it’s not your average home.
I have never seen this property to this day. Let’s walk with me our latest acquisition, a former marijuana grower.
Before we get started, here are the numbers:
- Purchase price: $ 300,000
- Expected rehabilitation costs: $ 120,000
- Expected selling price: $ 550,000 to $ 575,000
From growing plants to emerging profits
In the video above, you’ll walk through the property and learn about rehabilitation and the upcoming process.
The outside of the house looks pretty nice. That was a big selling point for us.
The siding is brand new, the windows are brand new. By the way, there is also a car garage with a new roof.
But the truth is, the outside of the house is very nice because the previous owner doesn’t want anyone to know what’s going on inside.
Once inside, the first thing you notice is that the door is broken. why? Because the sheriff’s department has rushed in!
At first glance, the electric panels look decent, but they may have been hacked and joined elsewhere in the house to power the grower’s heat lamps and the like. You will have to spend a lot of money to repair it.
Currently, the basement (where it entered) is incomplete, but I think it can be completed. The ceiling is high enough, at least by Seattle standards.
Everything that was a plant or growth material needs to be removed. As I expected, all the electricity in the entire cultivation area is connected.
But this is about 800 square feet of space. After gypsum board, fumigation to get rid of odors, and lighting, this area should be good.
There is also a garage for one car. The owner closed the garage door, but we put it back. We also plan to convert one unconnected garage to two.
The stairs upstairs aren’t up to the 2019 code, but you can leave them alone as long as you don’t touch or rail them.
There seems to be knob and tube wiring along the stairs, but it may have already been terminated. If not, you’ll need to get rid of it and get new electricity to get the best resale price.
At the next higher level, there is damage to the gypsum board. Replace it and refinish the walls and ceiling. A considerable amount of money will flow into the drywall.
Again, the doors and windows are barricades and need to be repaired.
The stairs that go up from the basement to the main level are a little funky, so the walls here are uneven. We don’t want to see it, but it will have to stay. You’ll probably create and hide a large coat closet there.
The only bathroom in the house is on this floor. It needs guts. Add a double bathroom and probably reposition the toilet. Tile it to make it beautiful.
Also, since this house has four bedrooms, you’ll need to add a second bathroom somewhere to create a master suite (probably upstairs).
So far, a lot of gypsum board is needed, a lot of electricity is replaced, and plumbing may need to be redone. Most of them seemed to me to be galvanized.
It costs a lot of money to remove the debris here. Growth equipment is ubiquitous and there are additional HVAC equipment throughout.
There are acoustic tiles on the ceiling. You also need to get rid of it in order to improve the resale value.
But across the main floor, these arched walkways are very cool. Hold them.
There is a bedroom right next to the dining area — people tend not to like it. Maybe it will be a burrow instead.
Currently, the kitchen is closed by a wall. If it is not load-bearing, it may open its wall. If not, you can attach a beam or create a pocket window. Our designers will understand that.
In the kitchen, the plumbing looks fine, but the electricity is fine. And everything else there also needs to be replaced. So $ 120,000 will go soon.
Actually, this is a so-called 1.5-story house, so the ceiling is low. I can’t make something like this today. But it’s already here, so we can keep it.
Most of the walls built here are plywood. All of this should be removed and seat locked or seat locked (if you want to save money).
There are two large bedrooms here — this is good. You can put the master suite here or on the main floor with two other bedrooms. If you build it here, it will be huge and you can eliminate the second bedroom instead of the 6 or 8 piece bathroom.
You can add a bedroom to the basement to keep it in 4 beds. Alternatively, you can convert the basement into an attached residential unit, which can be turned into an apartment complex. However, it may be expensive to put a bathroom in the basement, so I think that’s the way to go.
In most cases, the house is structurally very healthy. This is great news.
Would you like to buy this house? This is a big project. But if you take everything out of here, it’s a blank slate. So far, all the junk here is just a distraction.
This is actually good for us. It scared other buyers.
1.1. Don’t be distracted.
All this growth equipment is like stepping into a hoarding house. Pay attention to the big things. In this house, it means gypsum board and electricity. Everything else is cosmetics.
2.2. Don’t be afraid to bring help.
It’s okay to be overwhelmed by seeing a project like this. Please bring help.
Bring in a draftsman to create a 2D or 3D floor plan so you can find confused rooms, corners and gaps. Then fix them.
Bring a designer. Bring a contractor. (However, if you want to bid, it’s cheaper to get the demo first, throw the company in the trash, and put out all the trash.)
Watch the video above for additional fixes and flip tips.
Want to think about what you can do in this house? Upstairs master bedroom? Master bedroom on the main floor?
Please leave your ideas in the comments below!