Tracking my first FLIP! Pics & Numbers included..
Hello. I'm Jared, a newer real estate investor in the Akron/Cleveland area. I work full time as an attorney & live in Northwest Akron. I had always known an awesome contractor, so I figured I would use him to do my first remodel.
Six months after joining BP & researching the whole rehab & remodel game, I found a really good deal. I had already done extensive research on the comps in my market, so I knew instantly that this was a good price. I feel bad that I haven't been active on the forums during the rehab, so this post should make up for my lack of activity. Here is the story of my first flip along with the numbers.
I found this house the weekend before thanksgiving 2013. Originally listed at 153,000, I noticed a recent price drop to 128,000. The comps in this area were great. My research confirmed I could likely sell for 210-240. My contractor gave me an estimate at around 45k to remodel. Factoring in 4k for landscaping (irrigation issues) and an additional 10% I was probably looking at 50-60k spent on remodel. I spoke with another friend who invests in columbus. We agreed to JV w cash & putting both our names on the title. This was a one owner home built in 1966 in a nice area in Northwest Akron. I negotiated down to 119,500. Conventional mtg, 20% down, piti $1007. Closed on Jan 13, 2014. As you can see, not many updates had been done! 
Scope of Rehab- New roof, 11 new windows + sliding glass door, gut & remodel kitchen & 2.5 baths, total landscape job- half acre, paint the entire interior & exterior, knock out the dining room wall (see above, left wall), refinish hardwood (I ripped up the carpet after closing and the entire house had original oak hardwood in it. I had no idea when I bought the place), and new electric- box & installing more lighting. (BP, my contractor, & the book FLIP helped me figure this out)
Here are some pics from during the rehab. I should have taken more.. whatever.
landscaping, new windows
living room, without blue carpet
April- kitchen & dining room w dividing wall removed
May- Kitchen drywalled, taped, electric installed
new roof $3700, Exterior paint $2300, new house... priceless ;)
New kitchen- (Appliances & warranties- $2900 Home depot)
Rehab Costs $$$- I was very satisfied with the results. The house looks great, and we stayed on budget. Labor & materials- 54k, acquisition & holding costs (including 22k down payment)- 30k. Utilities- $1200. Overall expenses including mortgage I am at about $181k on expenses. I listed the house last week FSBO for 239k. Three agents have comped the property for me. All say the same thing.. value at 215-230. We chose to list the property before the rehab was complete, so I will post some pics of the bathrooms next week when finished.
Time- basically, we were delayed alot because of the winter, and my inexperience. Ideally, this project should have taken less than 3 months.
Buyers- right now we have one family interested, and I told them I would much rather sell to them for cheaper than list with an agent. I'll probably have to use an agent soon if I can't sell it. I tell all the agents I would work with them on a standard 3/2 split if they brought me a buyer. I would say 1 out of 5 follows up and actually pitches me something. These buyers should be preapproved soon. I know they like the house. So, I will use this post as a forum for updating you guys on my journey to closing. If you would like to take a look at the listing, just google 435 Schocalog Akron, OH. (I know my pictures aren't great)
Whew.. there goes my first 'legit' post on my first project. Just like to say I owe a huge chunk of my success to BP & the BP community. I'll try to be more active from now on. Any feedback & questions are much appreciated. Thanks again BP...