They Bought An Old Property For $105K And Expected To Sell It For $280K. Now The Flip Feels Like ‘An Onion That Worsens’ As Remodeling Was Botched
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A real estate investor thought they had found a profitable house flip. The plan was to simply buy an older property for $105,000, renovate it, and sell it for between $250,000 and $280,000.
Instead, the project turned into what the investor described as “an onion that worsens.”
In a recent Reddit post, the investor explained that the house already had a complicated history. Previous remodeling work appeared questionable, with old knob-and-tube wiring in some areas, newer electrical work in others, and oddly placed bathrooms throughout the home.
Things became even more complicated after they hired a general contractor and paid nearly $53,000 for part of the renovation work.
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The Contractor Disappeared
According to the investor, the contractor completed some work before disappearing from the project entirely.
The situation left the property partially renovated and the owners scrambling to find electricians, plumbers and other tradespeople to finish the job.
The investor said they were worried that getting electrical and plumbing permits might uncover even more costly problems hidden in the old house.
“I am afraid if we pull permits for electrical and plumbing, they will find a lot more stuff given that it’s an old house,” the investor wrote. “What should I do?”
Many commenters urged them to stop worrying about uncovering additional problems and focus on fixing the property properly.
“Do the right thing,” one investor wrote. “Pull permits. Don’t offload your mistakes onto an unsuspecting buyer.”
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Others pointed out that once the investor was aware of potentially dangerous wiring, ignoring it could create even larger problems later during inspections, financing, insurance reviews or future sales.
Several experienced investors said the project’s profit margin was likely disappearing quickly as renovation costs continued climbing.
One commenter estimated that after accounting for the purchase price, contractor costs, electrical upgrades, plumbing work, permits, commissions and carrying costs, the investor could easily end up with little or no profit.
