In the last few years, there’s been a popular phenomenon called ‘house flipping’. For the two of you living under rocks who don’t know what I’m talking about, house flipping is buying property in order to resell it quickly, with the goal of making money.
Ever since we bought the Sheridan house and decided that we’ll likely sell it when we’re finished, friends have referred to what we’re doing as flipping. I cringe every time I hear that. It’s like nails on a blackboard to my ears. In theory, yes, we are fixing up the house in a short period of time likely to sell it. In reality, however, there’s a big difference between what we’re doing and what I believe flipping is all about.
People have always been seeking ways of easily making money. House flipping is often seen as one of those ways. In many cases, people have *profited* 50k-500k or more. Their primary motivation is money and/or profit. Obviously what we’re doing needs to be financially profitable in order for us to be doing it, however, our motivation is far more than monetary. I think the real issue that I have with the typical ‘flipper’ is that decisions about the house are based solely on monetary gain. Finding that balance between too cheap of carpet that it will be a deterrent and too nice of carpet that you cut into your profit. Everything ends up being driven by the bottom line.
We love old houses and the character and craftsmanship that went into them originally. Our goal, rather than being driven solely by a profit mindset, is to update the house in such a way that the character and quality is maintained while benefiting from the many improvements and conveniences that weren’t possible 80+ years ago. It’s not necessarily about doing a precise restoration to the way the house was originally built. Not everything old was good, especially because our lifestyles have changed – the walls in the shower of the Sheridan House were plaster. Cement board under tile is a far better choice. A fiberglass insert is not. Had that decision been driven solely by profit motive, fiberglass may well have been the outcome.
I’ve certainly seen some houses that hugely benefit from cheap carpet, paint and linoleum and whose character is in line with those materials. But the prevailing mindset among flippers seems to be that you get in, fix it up as quickly and cheaply as possible so that you can sell it for as much as possible. For most houses, especially older ones, so much character can be lost in that process that it can never be fully regained. And while you might line your pockets for the time being, it doesn’t seem like it will benefit anyone long-term.
There was someone else who was interested in buying the Sheridan House – an investor who wanted to flip it. His plan was to gut the entire house down to the studs, re-drywall everything and start over. Thankfully, the previous owner was emotionally attached enough to the house that he couldn’t bear the thought of that happening. He was relieved when he showed us the garage and we fell in love the with old carriage doors and the slightly off kilter walls, rather than wanting to tear it down and build a new garage. Would it be easier and cheaper to tear down the garage and start over? I’m pretty sure it would be easier for sure. But the garage is one of our favorite things about the house and with a little time (or a lot of it, more likely) and effort, it can be fixed up in such a way that it won’t lose it’s character but will be able to serve it’s purpose for another 80 years.
I’ve been wanting to rant about this for quite a while and in the meantime, it (thankfully) appears that the flipping trend has started to subside. There will always be investors who buy properties and fix them up, some who will do it well and in keeping with the character of the house and some who won’t. Our goal, however, is to never fall into the trap of making a decision based solely on the impact on the bottom line.
