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Posted over 9 years ago

My First Flip

Thanks to Bigger Pockets, I started my real estate investment in January 2013. This is my first blog and in the first year of investing, have two rental properties and one flip under my belt. The first flip was highly profitable, this was the property my partner and I bought at the auction. It was a split level 1972 house. We took our time to fix this, from acquistion to sale was about six months. We bought the property with hard money finance and converted to conventional loan right away. The process of rehabbing involved interviewing contractors, only for labor as we did all the material purchases. I acted as a general contractor (I have  a full time job), lining up all the trades people and researching the best places (good quality and low cost) to source materials. The kitchen and bathrooms were gutted, the kitchen was opened up to give a feeling of space. The bathroom was expanded by bringing a closet space in to the bathroom, the basement was finished. The faucets and fancy washbasins for bathroom were bought online at one fourth the cost of that available in the stores.There was also a break in, the thieves were only after tools looks like, though they liked a bowl sink which cost us $40. During the process I also acquired my real estate license. The property was staged and I listed it myself saving on the selling commission. I used heloc and credit cards to fund the deal through the rehab process.The rising Seattle market took care of all our mistakes,  mainly the long time taken to rehab. The property was bought for $270,000 and sold for $440,000 in a bidding frenzy and we netted a good profit (after rehab and financing costs). Not bad for the first deal. I have right now two properties under rehab. Lessons learnt, have all the material sources lined up so that once the project starts, it can be wrapped up fairly quickly. Looking back, we could have finished the rehab in two months. Thanks Josh and Brandon for putting together such an awesome resource www.Biggerpockets.com.


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