Property Walkthrough and Assessment: Live Review

TLDR
I reviewed a student’s walkthrough video on a ground-floor condo. Take the lowest comps, maybe lower. Keep the existing tile instead of demoing it. Skip the leveling pour. And watch for the shower wall damage almost everyone misses.

Table of Contents

Take The Lowest Comp

One of the comps is on a different level with a better view. It would come in $20,000 to $30,000 higher than the others. I would not use it.

I always take the lowest comp in the range of comps and sometimes lower. That is how I back into a sale price I am confident I can hit in any market. A pro flipper does not buy to a best-case exit. A pro flipper buys to a conservative exit and lets the upside be upside.

Conservative comps protect you in a flat market. They make you rich in a good one.

Save Money On The Tile

In this condo, the entry has tile that sits next to the living room where new LVP is going in. You do not see the tile the second you walk in. The kitchen and hallway are the first impression.

So you have a choice. demo the tile out and put LVP throughout for a consistent look, or leave the tile and put nice LVP in the entry that complements it. Leaving the tile saves real money because tile demo is labor heavy, especially on a concrete slab.

The exception: if the existing tile is actually LVT that is just stuck down on the floor, rip it all. LVT on a slab is cheap and the transition looks better if everything matches. Tile set in mortar on a slab stays.

Pro Tip
On every ground-floor condo, check whether the tile is set in mortar or glued down as LVT before you price demo. A ten-dollar pry bar tells you the answer in two minutes.

Cabinet Fronts Instead Of New Cabinets

The kitchen cabinets in this unit are in good shape. I was going to replace them. Do not.

A decent carpenter can take the existing cabinet boxes, put new shaker frames around the fronts, and paint them. It looks like new shaker cabinets at a fraction of the price. I have had guys build the fronts on site, not even sent out to a custom shop. It is a day of carpentry and some paint.

The other reason to leave the boxes: when you pull cabinets out, you expose whatever is behind them. Plumbing. Electrical. Wall damage. Now you are fixing things that were not on your scope. Keep the cabinets in place, redo the fronts and finish.

Appliances, new sink and faucet. An under-mount stainless or a cast iron in black or white changes the whole kitchen. Nicer countertops on top. Quartz if the neighborhood supports it, butcher block if you want the look to pop for less money. Shaker cabinets painted white with a butcher block top is striking in the right neighborhood.

Pro Tip
If you want to save more, open shelving above instead of upper cabinets. Some people love the look. I am not one of them. But it works in some markets.

Skip The Concrete Leveling Pour

The student wanted to pour a concrete leveler to make the whole floor one slab, because there is a small step.

No. Bad idea.

This is a 15 by 15 room, about 225 square feet. You are looking at three to four inches of depth over that area. That is a few yards of concrete. Labor to get concrete into a condo unit is the real problem. Chutes through a back door, pressing it up against a wall, finishing it smooth. Huge job for a small cosmetic bump.

And it does not add value proportional to the cost. A clean LVP installation with a transition at the step reads almost as well to a buyer. Nobody is paying $8,000 more for a property because the living room is one continuous slab.

Know when a detail is worth paying for and when it is not. The leveling pour is not.

The First Bathroom Is More Important Than The Master

There are two bathrooms in this unit. One is the master. One is the secondary bathroom that guests see first.

The first bathroom a buyer walks past is more important than the master bathroom, even if the master is bigger. The first thing people see creates the filter they judge the rest of the house through.

Spend more effort on the bathroom people see first. Nicer finishes, new vanity, new toilet, new tile, refinished tub. The master can be second priority if the budget is tight.

That is the whole psychological appreciation play. What the buyer sees first colors everything else.

The Hidden Shower Wall Damage

The student showed me the master shower. Water is getting in around the faucet. That means the wood inside the wall is damaged. Probably both walls, because water finds the low spot and travels.

I would expect to demo the bottom of the shower wall, replace the damaged framing and subfloor, put a new shower pan in, and re-tile the bottom. The existing 4x4 tile on the upper walls can stay. A refinisher can come in for about $500 and resurface both the tub and the old 4x4 tile so the old and new match.

Common Mistake
Ignoring a small amount of visible water at a shower faucet. Water is never a small problem. It is always a bigger problem six inches into the wall. If you see visible water staining, demo and look.

What you do not want to do is re-tile the whole shower top to bottom for a problem that only requires demo and re-tile on the lower two feet. Match the repair to the actual damage.

What This Flip Should Cost

The student asked if this renovation comes in under $30,000 or $35,000.

For most people, this is a $35,000 to $40,000 project once you add a couple grand for the wall damage inside the shower. Two bathrooms with demo and re-tile, kitchen refresh, new flooring throughout, paint throughout, and some appliances is a real scope.

Based on this student’s pricing from a prior flip, I think they hit $30,000. Their subs are cheap enough that even a full project like this stays in that range. If your pricing is more normal, plan for $40,000 and carry a contingency on top.

A conservative budget loses you nothing. A tight budget loses you the project.

FAQ

Why always take the lowest comp?

Because markets soften faster than they harden. If you underwrite to the middle of the range and the market softens by 3%, you are under water. If you underwrite to the low end and the market holds, you have upside. The conservative sale price is the buy price’s safety net.

Is refinishing a tub worth it?

Yes on a cosmetic or mid-range flip in a neighborhood where buyers are not demanding a new tub. A $500 refinisher on a tub and surround lasts five to seven years and looks new. Replacing the tub is closer to $2,500 to $4,000 once you factor in demo, surround, and plumbing work.

When would I replace a tile floor on a ground floor condo?

When the existing tile is cracked, out of date, or installed poorly. When it creates a clear visual problem from the front door. When you are going high-end and you need a consistent flooring finish throughout. Most mid-range flips, the existing tile can stay.

Should I always refresh cabinets instead of replacing?

No. Refresh when the boxes are sound, the layout works, and the condition is decent. Replace when boxes are rotted, the layout needs to change, or the neighborhood expects better than a refresh. Baseline the neighborhood first.

How do I budget for hidden damage?

Carry 20% contingency on the rehab. A $30,000 project carries a $6,000 cushion. When you find shower wall damage like this one, pull it from the cushion and keep moving. Do not borrow more money mid-project to fix surprises.