Flipping For Profits September 2023 Edition
Purchased $156,000; Sold $420,000
David Muhler owner of Metro One Properties, LLC does not shy away from hard work. His work ethic and attention to detail are apparent in all of his property flips. David is also quick to recognize many of his real estate successes are due to his crew and subcontractors that share in this vision. If nothing else, hard work is the takeaway from this edition of Pro Tips.
As a property flipper, I find it such a delight to acquire a project full of character like Metro One's project at 5500 Hamilton Ave, Cincinnati, OH 45224. It's a romantic 1929 stone cottage located in College Hill on the apex of Hamilton Avenue. There's nothing like the hunt of finding pieces that restore the character of the original build or planning new more functional designs that complement the old-world craftsmanship.
Metro One Properties purchased the property for $156,000 in March of 2023 and sold it for $420,000 in July of 2023 ($21,100 over asking price) in just 2 days.
Spring Valley has had the pleasure of financing several of David's past projects and look forward to sharing his property flipping insight with our readers.
Pro Tips from the Property Flippers
David sat down with me for some straight talk about success in the flipping market:
WORK HARD, Every. Single. Day. and pay attention... If somethings done wrong, redo it. Find quality subs. Stay on your job daily and don’t leave a stone unturned.
Keep an eye on all the fine details.
David also wasn't afraid to try something new on this project which he attributes to the $20K increase in his selling price... STAGING. Here's what he had to say about his inaugural staging experience:
I think I will stage every property going forward and I think I lost money in the past by not staging. It really made a difference on this project and helped me get well above asking price. I think it really allowed people to visualize how to use the space. You never know what will happen, but I think I'll continue to stage.
David gives thanks and recognition to his team on this project:
My crew, Robert Jones Plumbing, Habitat for Humanity, Custom Floorings, Steve’s Heating & Cooling, Sohan & Sons Waterproofing and my new staging company- Design to Market.
Investor Tips from this Profitable Flip
Find your crew- Flipping houses is not a 1-person job. Have you ever tried to install a door single handedly? I mean it can be done but what a waste of time. In this basic example, and many other flipping scenarios, multiple people make for smarter work. We are hopeful all contractor relationships workout, but the reality is there is trial and error when establishing your trusted crew. Here are few suggestions for finding the right crew:
Identify how to manage the workload by taking an honest assessment of yourself:
What are your strengths?
What areas are you inclined to build new talents?
What areas do you need to find trusted people to perform the work for you?
Weigh your options for employment:
Do you want to employ people directly giving you more control over their performance but more administrative responsibility and liability?
Do you want to contract with other companies that offer a faster turnaround time at the expense of giving up some control and spending a bit more money?
Do your due diligence: When using subcontractors research the reputation of companies and engage in a written contracts prior to any work being started. If the work is not being performed to the service level agreed upon in the contract, SPEAK UP!
It's in the Details
This house is full of detailing and quality work that you can see for yourself in the video below. Here are just a couple examples of detailing used to create a big ascetic impact.
What a difference the 2-tone accent makes
A little pop of exposed brick really speaks to the vintage flare of the house
The Stage
When Jo Potvin of Design to Market Home Staging and I started talking about collaborating for this series, neither of us had any idea of the overlap in customers we would uncover. I had multiple projects in the pipeline for this series and as I mentioned them to Jo she would give me the same response over and over again, "We stagged that flip!" Could Design to Market Home Staging be the best in the biz? I think if you ask our client base, the response would be overwhelming YES.
Here are Jo's comments about her stagging approach to this flip:
"When staging an historic home like 5500 Hamilton Ave., the approach is to balance the comfort and livability of the staging solution with the charm of an older home. Often these properties present unique floor plan challenges in creating a today way to live in these older spaces. David and his team did an amazing job with the floor plan in this renovation. The ability to not only incorporate a study but to also stage a third-floor family room provided the opportunity to maximize the usability of the spaces.
From an esthetic perspective, we again balance the current design trends, the architectural cues of the home, and the material selections made by the investor. David’s selection of current mixed metals, appealing light fixtures, and a light and bright feel within the home again provided the perfect backdrop for staging. As stagers, we consider not only the style of the furniture but the scale is also critically important. We want rooms to appear pleasantly filled but not cramped. Our use of artwork and accessories is targeted at creating listing photos that increase the number of showings, and provide an in home feel that entices the prospective buyer to make an offer!
Critical to our staging success is our 22,000 square foot warehouse full of furnishings. Trends are changing more and more quickly. The donation of items to New Life Furniture Bank paired with our furnishing of Short Term Rental properties for our clients permit us to continually purchase new and exciting on trend furnishings."
The end result:
A monthly series showcasing tips from professional property flippers partnering with Spring Valley.