Rehab Recap Season 1, Episode 2 – Watch on YouTube
Introduction
Welcome to episode two of Rehab Recap! In this series, I interview fix and flip investors in Hawaii on their latest project. We do a quick tour of the newly renovated home, showing some before and after photos, then end each episode with a quick interview.
If you like this series, I have more episodes coming out every Saturday! Make sure you subscribe to my YouTube channel or simply sign up for my newsletter below.
Without further ado, let’s get into it!
Meet the Investors
Kina and Josh Knisley are another house flipping power couple on the island of Oahu. Kina is a full-time realtor while Josh works full-time as a computer engineer.
Kina also works along side another realtor and real estate investor, Kimo Blaisdell. Together they form Team K2 and provide five-star service to all their clients. Team K2 handles both buying and selling homes, VA loan and conventional loan purchases, and of course, they work great with investors.
Check them out at their website, https://teamksquared.com/!
Epic Triplex House Flip
Quick Details
- Living Space: 2,363 sqft
- Lot: 5,044 sqft
- Unit 1: Two Bedrooms, Two Bathrooms
- Unit 2: One Bedroom, One Bathroom
- Unit 3: Three Bedroom, One Bathroom
- The home is nestled high on the side of a mountain offering amazing views of Honolulu.
- See their listing at: https://teamksquared.com/for-sale/1732-skyline-96817/liliha-kapalama/20182988/
Property Walkthrough
Watch the full episode on YouTube!
Investor Interview
How did you find this property?
This property was found off of the MLS. As a matter of fact, all of Kina’s flips thus far have been from listings from the MLS!
Side note: Kina does not put offers on properties that other clients have put offers in on. Kina and Josh are doing well with two to three projects at a time, so all new listings that have great fix and flip potential are just sent off to her investor clients.
How much did you acquire the property for?
The property was originally listed at $810k, but Kina offered $815k to get her offer accepted.
How much was the rehab?
Kina and Josh’s original repair estimate was for $153k, but in the end, they had spent $176k on the rehab. So what happened?
Since the property we’re talking about here is much larger than their usual flip projects, they underestimated the costs of some things. Painting was one thing they underestimated. In addition to that, their “as-is” contingency meant that the previous owners could leave anything they didn’t want to take in the house. It cost them a whopping $7,000 just to haul all the junk out of the property before they could start renovation work!
How much do you expect to sell for?
Originally listed at $1.175m, it’s currently in escrow for $1.08m!
What was the biggest lesson you learned on this flip?
Have good contractor relationships. Josh learned that he had to be more firm with his general contractor. When the schedule started falling behind, Kina and Josh were lenient at first. But once they were far behind on schedule, they had to fire the general contractor and put a new one to pick up where they left off.
Luckily, they had a solid contractual agreement that allowed them to fire the general contractor as long as if all the work that was done was paid for. In addition, they were able to find a new general contractor to come in to finish the job. As a matter of fact, that general contractor did so well, Kina and Josh hired him to work on two of their other projects!
Conclusion
Kina and Josh did a great job with reorganizing the upstairs to be more functional. Although this wasn’t their first flip, they still had some lessons learned! Thankfully the problem they encountered was easily resolved, but had they stayed complacent with their current contractor, all of their profits would’ve disappeared due to an extended hold time.
Have you ever had to fire a contractor? Tell us about how it went!
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