Is “Flipping Homes” for you?
“House flipping” is when a person buys a house and fixes them up a bit and sells them again. But this can be a risky process!
Two gals from Cannon Falls are doing this. In their first year they flipped four homes: one in Burnsville and three in Rochester.
2FH,LLC
This is their business name. Looks professional… and their legal adviser explained it would look better on documents than the words it stands for.
The two business women agreed.
But they can’t help smiling because
the 2FH stands for
“Two Flipping Hotties”!
Teresa and Emily
Teresa Johnson recently moved to Cannon Falls. For over 16 years she had been an active duty Army spouse, married to Lt. Col. Jesse Johnson and a stay-at-home Mom to their four children. This means she had moved to several different homes and found her love of interior design grow.
Teresa explained, “Each new Army home brought on new challenges. Challenges in which I loved to find a solution!”
She met her business partner Emily Schoenfelder, also of Cannon Falls, three years ago through their children’s sports games. Teresa continued: “We bonded over kids, Plexus Health Supplements, clothes, purses and real estate!”
Emily Schoenfelder is the CFO of Black Diamond Xtreme Engineering located in Cannon Falls. She is a CPA who spent 10 years in tax and audit work before shifting gears to corporate accounting.
Teresa explained how their talents complement each other. “Emily is the numbers brain and I am the design brain.”
Teresa also does private interior designing on new builds, existing homes and remodel work.
She continued, “We work on a very strict budget, which gives me the ability to challenge myself and the supplies we use; while maintaining the quality of the work.”
Scariest part of flipping homes!
Teresa explained, “The scariest part about this business is buying homes often times without an inspection, since the flipping market is very competitive. And knowing very well to ALWAYS expect the unexpected!
“When looking for potential flip homes, we consider the profit margin, the amount of work needed, and use our natural ability to see value in homes that our competition may not.”
Warning!
“I would suggest to people who may be thinking of entering the flipping world based on the fun shows they may watch on TV… DON’T!"
Teresa continued, “Yes, it is fun. But, our definition of ‘fun’ might be a bit different than yours! This is not a straight forward, reliable source of income.
“It is a game which involves wins and losses. No matter the amount of work you may put into one home, you are not guaranteed anything!”
Not like on the TV shows…
“And, there is no network TV crew there to help us out of problems.” (Yes, they are open to having their own reality house flipping show!)
Each home is a challenge Teresa explained.
“Every one of our flip homes has brought a unique challenge to our business. Whether it be a success or a failure, each one of those challenges has turned into our greatest reward of learning.
“We decide what we can do ourselves based on how the budget is playing out. I've done things I would have never seen myself do!
“In the end, no one will work like Emily or myself will at our homes.”
And Teresa clarified one design mistake when she took something that was popular in one location of Minnesota and used it in another. But it did not translate as well in the second location.
She concluded: “We have both learned and laughed throughout the process of each home!”
A hint when considering flipping a house:
When considering a house, Teresa concluded, we make sure we do not have to replace ALL of the kitchen and ALL of the bathrooms! The exterior is also a huge undertaking. And there is always 10% of unforeseen costs that arise to keep us on our toes!
Here is one example
of their changes that proved popular.
Before
After
Kitchens are a huge factor whether the house will be a good flip! Teresa shared. They always try to keep the cabinets instead of installing new ones. It cuts major costs. Shown here are upgraded appliances, painted cabinets, new countertops, new backsplash, knobs, lighting, and flooring.
