Questions from Joe in Arizona: What is your average amount you spend on fixer-uppers before you flip them? Where do you buy building materials?
Answer from Jeanette Joy Fisher
We spend between $8k and $10 on average and do almost all the work ourselves. We buy many building materials from ReStore, Habitat for Humanity's thrift store. Habitat ReStores are retail outlets where quality used and surplus building materials are sold at a fraction of normal prices. Materials available at ReStore are usually donated from building supply stores, contractors, demolition crews, and from individuals who wish to show their support for Habitat. Besides helping Habitat raise funds, recycled materials help the environment.
Not all building materials at ReStore have been used. In fact, most of the lighting and hardware we buy from them is brand new. Sometimes a light fixture may be missing a globe. We purchased a chandelier for $25 and found the exact fixture at Home Depot for over $200. We also found the missing globe replacement.
We have purchased oops paint, light fixtures, new sinks, window hardware, and even beds for our cabin at ReStore. Find your local ReStore.
In addition to shopping at ReStore, we shop Lowe's, Home Depot, Do-It Center, and our local independent hardware store. While our property is in escrow, I take a day and compare prices on needed materials and supplies. When we close, I know exactly where to go buy materials.
We use the same small independent flooring company owned by another investor who got into the business to save money on her 100 rentals. She purchases large quantities of discontinued flooring and roll-ends. You can use roll ends when rooms are separated. For instance, we used one piece in the master bedroom, another on the staircase, and a third in two bedrooms. The carpet retail price of $38 per yard cost us less than half. The house sold for more than any other property ever had sold for on the street.
When I can't find what I'm looking for at a discount price, I shop high-end retail stores. The money saved on supplies helps fund something exquisite to make the property stand out.
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Copyright © 2006 Jeanette J. Fisher
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