I had no intention of investing when I bought my first investment property. Quite frankly the only thing I knew about investing in real estate is that some landlord would...
It’s been a long time coming and now that it’s finally here. Things aren’t as scary or unfamiliar as I was expecting it to be.
Our first full renovation project started today and all of the chaos that I felt leading up to the project just sort of melted away as we all just started following the road map we had laid out over the past few months.
The house is a 3 level back split in a beautiful old neighborhood in North West Oshawa that is just turning over as older residents move out and new young families take their places.
We are installing all new high quality laminate flooring and ceramic tile throughout, completely replacing the kitchen and both bathrooms, adding tons of new lighting and all new doors, trim, baseboards and paint.
Here is a Photo of the Kitchen After Day 2:
Here is the Bathroom:
Looks a little bit scary doesn’t it?!
There is definitely a lot of moving parts with a job this size. I would like to share with you the steps that my wife Jennifer and I took in preparing it, and after the renovation is complete I will check back in and go over what we got right and what aspects of our planning and execution need to be improved.
Planning for a Fix & Flip Project
We hired all of our trades through referrals and therefore got just two quotes for each instead of three like I find that everyone recommends.
I hired a construction contractor, an electrician, a plumber and general labourer all of which have WSIB insurance. This project is a joint venture with an investment partner and it is everyone’s best interest to pay a bit more and get records of insurance coverage. Peace of mind is a wonderful thing.
After reading our friend Ian Szabo’s book “Reno’s to Riches” and understanding the importance of having every single aspect of exactly what each contractor is expected to do right down to the smallest detail, our contracts were crafted painstakingly. Then they were edited over and over again before having them signed along with a clause that each item must be signed off on by myself or Jennifer before it is considered complete.
After collaborating with all of our contractors Jennifer created a detailed spreadsheet for all of the materials required including the department, description of the item, price, quantity and SKU# which we then sent directly to the store for preparation and delivery.
We did not make a timeline for the project but the construction contractor and electrician did walk us through theirs and all were within our parameters of five to six weeks. We gave ourselves a two week grace period to tie up any loose ends.
With some smaller rehabs on some of our rental properties under our belts, Jennifer and I will be digging in and getting dirty taking on all of work that is within our scope of knowledge. This includes the entire garbage disposal, cleaning, removing of wallpaper, demolition of cabinets, removal of old doors, trim, baseboards and floors, choosing to leave all of the new installations to the experts.
Jennifer and I made a complete plan and we intend to stick to it. Of course the plan itself went through several revisions in the making, but nothing is perfect and if need be we may be forced to stray.
Knowing this we feel comfortable moving forward and so far have learned that the most important aspect in any renovation project is the planning.