First Flip SOLD! Here is the deal A-Z.. I use that term loosely
Keywords: Sacramento, Cameron Park, California, First deal, Flip
Hi BP community!
I thought I would come here to post about what I would consider "my families first flip".
A little over a year ago I began my start here on BP learning and self educating. My family and I were aiming to invest in real estate. After finding an experienced investor, through BP actually, we played hard money lender on a flip to get our feet wet. The second deal, or my first flip as I would call it, went slightly different. After joint venturing the deal we had fire the initial contractor, were more than double my rehab time, and had to scramble to find another contractor to finish. Eventually, the investor and my family parted ways and long story short we were left to sell the house and remaining profit. That is enough backstory... Here is the important part... Pictures and even better numbers!.
I apologize for not having 100% pre-rehab pictures. I believe some of them are a little ways into the rehab. The after picture were taken from the MLS. ....Lesson learned...
This house is in Cameron Park California.
*** These numbers are rounded and rough. I will be posting a detailed breakdown on a spreadsheet ***
Initial Analysis
ARV: $485,000
Purchase Price: $355,000 ($205k Cash Down, $150k Hard Money Loan@10%)
Rehab Cost & Interest Payments: $44,000
Holding Cost, Closing Costs: $7,000
Real Estate Commission 5%: $25,000 ( I know its $24,250)
Time Frame: 8 Week Rehab (Hoped for 4 to 5 months MAX initial purchase to resale)
Potential Profit: $54,000
Cash on Cash ROI in 4-5 Months
54,000 / 249,000(205k+44k)= 21.6%
Pictures of Before** Heights Before Pictures
Now for the actual numbers. I am going to lump it together to make it easy. I will post detailed spreadsheet later.
Sales Price of $480,000
Purchase $355,000
Rehab&Interest&Holding $72,000 !!!
*Note this is where we went wrong. I learned the lesson of how important it is to have quality people on your team. I had to fire the low budget contractor after he did no work in most the time with ALL the money. Lets now start...
Time Frame A-Z: 9 months!
* I think this is also an issue due to the face we listed a 6 bedroom home originally in November. Due to the contractor circumstance.. Ripple effect =(
In the time towards the end of the flip is when the individual i found and my family parted ways.
After all is said and done ( Close, RE Fees, Repairs, Taxes, Etc)..
Total In $427,000 ish
Total Out $ 450,000 ish
Profit $23,000
Detailed spreadsheet to come. The biggest issue was rehab cost literally doubled and of course time.
After pictures here - After Pictures
I apologize that the after picture are on Zillow and their quality. Am working on a fix..
A lot of drama. A lot of unforeseen things. A TON of irreplaceable experience and lessons leaned. And most importantly, the CONFIDENCE to go forward! Nothing like in the green on your first one.
I am posting this to share my experiences. BP has taught me a lot and I have learned a lot through other posts. Even more so through others constructive criticism of those posts. With that said I hope this is another learning experience for myself and others. Please bring any and all comments!
I will be updating this post and answering questions. Please feel free.
GAME ON!