Flip or Rehab?

House Odds Flip or Rehab?

CARLY AND JOEY SOSTHEIM CAREFULLY ASSESS PROPERTIES’ POTENTIAL

BY LIS KING

Thanks to HGTV pros like Christina, Tarik and the Property Brothers, house flipping has become a national passion. But a creative Emerald Coast couple has come up with their own take on this kind of entrepreneurship.

Carly and Joey Sostheim are making their mark with an annual goal to flip one house and rehab several others that will become permanent rentals.

It’s a formula that has worked well for them in the past three years. Carly, a busy Realtor with Corcoran Reverie in Seagrove Beach, Florida, said that originally their intent was rehabbing rather than flipping, but sometimes a property lends itself better to the latter.

“Once you run through the numbers, you’ll know whether this is a potential permanent rental or a property to be flipped,” she said.

Carly and Joey didn’t come from interior design or construction backgrounds. In fact, Carly learned her love for real estate through these rehabs of old homes, only then did she decide to switch career paths and become a licensed real estate agent with Corcoran Reverie.

“I found my calling. I found what I was made for. Whether it’s making an old home pretty again to keep as a rental or selling it to a new family we get to call neighbors, I love all aspects of real estate and I’ve found my place in life,” said Carly.

There’s another facet to the Sostheims’ choices of homes to grace with their tender, loving care. They have limited their search to the Cove and St. Andrews, two charming, historic neighborhoods in Panama City, Florida. Joey, Carly and their two kids live in the Cove and, from the very beginning, it was one of their goals to make it a better neighborhood. “There were sad and abandoned properties that had been damaged by Hurricane Michael,” Carly said. “We wanted to bring them back.” The couple began riding around on their golf cart looking for damaged and run-down properties. “Then we would search for owners, write letters and make calls to find somebody who’d sell to us,” Carly explained. “Finally, we found an owner willing to sell and she ended up wanting us to buy three properties, not just the one we had our eyes on. Talk about jumping in feet first!” For the entrepreneurs, things took off from there. They would spend long hours in the day jobs they held at the time, then come home only to keep working — including many late night trips to Lowe’s. Carly took on the design of the projects while Joey took on the role of managing the process and people.

Currently, Carly and Joey are busy with a true flip. It’s a 1,500-square-foot property on a rare half an acre, across from a park and with water views. They are adding 1,000 square feet and expect to put it up for sale by the end of the year. “We’ve always been fond of Bunkers Cove Road and this location. When we had the opportunity to bring this home back to life, we jumped on it,” said Carly.

The Sostheims have found that the right location and the correct budget are vital to a successful flip.

Carly Sostheim, house flipper and Corcoran Reverie agent, leans into classic, timeless designs with a focus on trends.

“Of course, your investment should be in a neighborhood that will attract buyers,”Carly said. “Buyers love community parks and playgrounds, for example. One thing holds true with all things real estate — location is key. So always buy in a desirable location where you know your value will appreciate. As for the budget, have a reliable contractor help you set a rehab budget and then add 30% for contingency. You never know what surprises will hit you, especially in an older home.”

Carly and Joey like to focus on the guts of the house, including big ticket items such as plumbing, electrical and heating, ventilation and air conditioning. “Joey gives me his budget for all of these items before I get my budget for all the pretty things like lighting, countertops, etc. We like to focus on kitchens and baths,” she said. “They sell houses.”

Carly also recommends that flippers add landscaping to their priorities as the pandemic has increased homeowners’ interest in outdoor living spaces. “Porches, patios and great gardens are in high demand,” Carly said.

She noted that big moves don’t have to break the budget. “At one project, we had to get rid of an old asphalt driveway,” she said. “We had it torn apart in large pieces and up-cycled into a walkway with pebbles surrounding the slabs. It looked great and saved us a lot of money.”

All those TV flipping shows have underscored what a difference good design makes, and Carly said that it’s her favorite part of the process.

“I get to pick the pretty stuff,” said Carly, “while Joey works full time handling our properties, seeking new opportunities, working with contractors, etc. I lean towards classic, timeless design, but I still keep trends in mind.”

Carly said that light-colored floors are on trend and can make a room feel more spacious.

Warm wood tones are trending, too, and Carly finds them to be “very hot for kitchens.”

“Think of a wood island, a wood built-in pantry, one wall of wood cabinets,” she said.

Her views are shared by such authoritative groups as the National Association of Home Builders and the National Kitchen

& Bath Association. Both conducted All those TV flipping shows have consumer surveys following the pandemic and found surprises. Porches came out on top as the underscored what a difference good “most wanted feature,” followed closely by walk-in pantries. For the first time in years, larger homes made the design makes, and Carly said that it’s wanted list, with consumers indicating a need for flex rooms for working at home, in-law suites or home schooling. her favorite part of The NKBA survey showed a preference for larger islands, refrigerators and the process. freezers, better ventilation and handsfree faucets, appliances and toilets. To the delight of flippers and rehabbers everywhere, both associations and numerous think tanks concluded that the pandemic has made at-home comfort more important than ever. The Sostheims agree. “When Covid forced families to live together 24/7, they discovered needs that weren’t obvious before,” Carly said. “They are now much more aware of what makes a house a home.” Carly and Joey went into flipping and rehabbing homes for long-term investments in search of financial freedom, but have since found it to be a true passion for the whole family. “Our kids, Gray and Finley, are so into what we do,” Carly said. “They visit the sites to check out the progress, and Finley loves to help me pick out tile. She’s forever finding Instagram ideas for me. And it’s so fun for them to be a part of their future, their investments — because we invest for them.” 

Carly enjoys getting to "pick the pretty stuff," noting that light-colored floors are on trend, making any room feel spacious.

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