Projects

25 of the Most Common Rehab Mistakes

On Thursday May 19th, we hosted a hard hat tour at our recent development project in Petworth. We were joined by 15 of our friends from the DC, MD & VA Real Estate Investing Meetup and had a chance to provide a detailed walk through of the project and share insight into our acquisition, financing, construction and design process of this row house project. We broadcasted portions of the tour live on our Facebook page so feel free to watch, share and comment!

One of the questions that repeatedly came up was around common mistakes that many developers and flippers make while attempting to acquire and redevelop residential properties.  We've certainly made some of these mistakes so we decided to compile a list of what we consider 25 of the most common home flip blunders.  This is obviously not a full list and might not apply in all cases but should serve as a good starting point. 

  1. Relying only on the information provided by the agent/wholeseller regarding the property without an independent verification. 
  2. Failure to check tax and lien records prior to acquisition.
  3. Not understanding property's zoning and its implications.
  4. Failure to obtain tenant rights and agreements prior to acquisition. 
  5. Relying on development estimates and after repair values (ARV) provided by the selling party.
  6. Failure to complete a thorough inspection and engineering report on the property. 
  7. Not getting bids from multiple general contractors.
  8. Insufficient budget for construction costs.
  9. Not having a contingency budget for unanticipated construction items.
  10. Underestimating overall project timeframes.
  11. Failure to understand permitting process, costs and timeframes. 
  12. Not working closely with an experienced architect and designer from the start to maximize property's potential and use. 
  13. Not having the general contractor and architect selected and in-sync with each other prior to acquisition. 
  14. Failure to agree on a SOW/contract with the general contractor.
  15. Not having a gap loan or reserved cash until the first construction draw is funded. 
  16. Making last minute changes to architect drawings without understanding implications. 
  17. Failure to display all the construction permits onsite. 
  18. Failure to make acquaintances with neighbors and the community.
  19. Not reviewing budgets on a weekly basis with the general contractor/project manager. 
  20. Failure to plan ahead with material purchases to keep costs low. 
  21. Not marketing in the neighborhood in the search of the next property/lead. 
  22. Failure to create a buzz with "Coming Soon" signs, flyers and events. 
  23. Not engaging with several active local agents to understand market conditions and ideal listing price. 
  24. Not staging the property.
  25. Low budget and unprofessional listing photos. 

 

 

Construction Update: 709 Hamilton Street, NW

Things are moving quickly at 709 Hamilton Street, NW property. Our construction crew have been working hard to bring this property to market and we are now at the halfway mark of completion. As of now; we have completed demo, interior framing, exterior painting, front porch installation, parking pad, fences, all new sidings, new roof, masonry and mechanical (all new HVAC, plumping and electrical) rough in. We are expecting an inspection to be done this week and drywall/painting and floor installations to follow next week.  Our designer has started selecting bathroom and kitchen finishes and we can not wait to see how things turn out.  Check back in a couple of weeks for more updates. 

 

Development Update: 1358 Kenyon Street NW

2016 is off to a great start and we've been busy moving right along on our basement condo development project in the heart of Columbia Heights.  We are essentially turning what was previously a dark and outdated basement into a 2BR 2BA fully renovated unit (with exposed brick walls!) that should be available for lease in February. Currently our crew are in the midst of installing bathroom tiles, hardwood flooring and interior painting. Over the next couple of weeks, we intend on finishing the kitchen area with custom cabinetry and granite countertops as well as some final touches and that should take us through the finish line.

Below are some pictures of the development. Check back for more updates.

Living RoomKitchenLiving RoomBathroom TilesBathroom

Update on 2227 14th ST NE

Restoration is progressing quickly at this single family row house located in the Brentwood neighborhood of Northeast.  We have completed a full demolition of interior and majority of  the new mechanical units and framing is finished. The fun starts now as we get ready to paint and install new cabinets, vanities, flooring, windows, doors and a brand new covered front porch. Check back for more pictures and progress report in a couple of weeks. Brand new half bath bathroom on the main floor.

New framing on the main floor

New ductwork

Master bath on the 2nd floor is starting to take shape.

Everyone loves a big closet so we came up with a walking closet for the master bed.