Tara
After successfully closing on our two Oak Forest flips in early 2018 and taking a well-deserved breather, we decided to tackle a home renovation project closer to our own neighborhood. With the knowledge we had gained from our previous experiences, we were eager to apply our skills, especially my abilities as a general contractor. We came across a listing for a 3-bedroom, 2-bath home just 3 miles away. The condition of the house was appalling, with it being run-down, filthy, and reeking of cat urine. Despite the challenges, we made a cash offer and quickly closed the deal. However, we had to wait for 3 months to start the renovation due to a leaseback agreement.
To kick off the project, I sourced and lined up a skilled crew from Thumbtack, an application known for connecting contractors with homeowners. On day one, we had a dumpster delivered and began the demolition. As a general contractor, I learned an important lesson: never leave the project during demolition day, even if you think your instructions are clear. Unfortunately, there was a miscommunication, and the crew ended up removing the entire upper and lower set of cabinets instead of just knocking out a fur down and upper cabinets to create a peninsula. This unexpected turn of events led to an increase in our budget as we had to purchase new cabinets. Thankfully, given the After Repair Value (ARV) of the property, we were able to find affordable floor-level cabinets from a local home improvement store.
Another important rule I learned as a general contractor is to not pay any money to tradespeople until the job is complete. Unfortunately, a plumber demanded a portion of the payment upfront to set a bath tub but ended up not completing the job. In addition to these challenges, we had to tackle various updates and repairs, including foundation repair, an extensive deep clean and the use of enzyme eliminators for the floors and walls, installation of new wood-look tile floors and carpet, replacement of windows and the roof, construction of a new fence, installation of canned lights in the living room, double sink vanities in both bathrooms, a rebuilt primary shower, granite countertops, ship-lapped walls, and exterior and interior paint. We also addressed other areas that needed some TLC using magic erasers, bar keepers friend cleaner, and a lot of elbow grease.
Considering it was my first project as a general contractor, I am proud of the outcome. Despite facing personal obstacles and juggling the responsibilities of taking care of three children, including a baby under a year old, and managing a summer break from school, we managed to make a profit on this project. Looking back, we often revisit this home and listing, and like many investors, we sometimes regret not renting it instead of selling it. The property value soared after the Covid pandemic, and the new owner made a substantial profit by simply adding stainless appliances and maintaining the work we had done.
