Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
Hey everyone! So I just closed on my first deal last Friday! I'm excited and can't wait to get started with the renovation process. My primary strategy is to fix and flip it. Right now it's a 2/1.5 but could be a 3/2 as it stands but cramped. Once completed it will be 3/2 with added sf. It's in Grand Rapids, MI. For those familiar with the area it's right near Wealthy/Eastern which is a great walkable neighborhood.
Purchase price - $30,000
ARV - $135,000
Repair costs - $70,000-$80,000
Projected profit of around $20,000-$35,000
Not a home run but not bad for a first flip.
I'll post again once the project gets going and I'm sure I'll have questions along the way. Thanks to BiggerPockets for getting me started!
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
10y
Ok, you might want to get a time frame to keep your project moving! Also only pay as % of completion, otherwise you run the risk of them dragging it out while taking on other projects..
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
10y
Way to go @Jonathan Thrasher How long will the rehab take? I'm shifting gears from rehabbing- rental to fix-flip..look forward to your progress...Good luck!
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
10y
@Rolanda Eldridge I'm not sure yet on how long it will take. We got one bid in from the contractor who we will most likely use but he didn't give a timeframe.
Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
10y
Ok, you might want to get a time frame to keep your project moving! Also only pay as % of completion, otherwise you run the risk of them dragging it out while taking on other projects..
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
Hi @Heather Klompmaker. It's coming along. Slower than I had anticipated but that's mainly because this is our first flip and we are working on getting all our contractors lined up. Most of the interior demo has been done. Now we are just waiting on getting a survey done next week to give to the contractor so he can get a permit. I'm sure once we have one flip under our belt things will move faster on the next one.
the ARV has gone up to 145-160k based on recent home sales and new developments happening in the area. However we are realizing our rehab price is going to need to come up as well. I'm a little nervous but I know it's going to be amazing when done.
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
@Heather Klompmaker. I'm not sure it's typical or not. I don't think so but because this house has been vacant for so long and hasn't had a survey done in forever, that might be why? The survey was only a few hundred bucks so not a big deal. I'm about to post a bunch of interior photos both before/after demo.
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
Here are some photos of the interior of the house both before and after demo. It's been vacant for over 10 years except there was someone illegal staying there recently even though the water was shut off. It was condemned by the city.
We knew it was a total gut job. Needed new plumbing, HVAC and electric, windows, everything. We're taking off the 2nd floor and adding a full height 2nd story and adding to it off the back above where the kitchen was. Adding about 600-800 sf of space. The covered front porch is coming down and will be an open porch. The front door will be moved to the other side of the house since that's where the driveway is.
If anyone in Grand Rapids wants to stop by sometime and check it out or talk about the project, let me know. I love meeting knew people in the industry.
front living room area
dining/living looking towards the front living room in previous photo. Door on left was a bedroom. Door on the right is the basement stairs. Door in the middle is a closet under the stairs going up. The stairs going up will be moved over top of the basement stairs as they should be which will open up the space a lot.
downstairs bedroom which will be open and part of the living/dining area
this was the existing kitchen which his now completely gutted down to the studs
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
upstairs bedroom
upstairs flex space which could've been a bedroom. The far wall will be taken out and built out over the kitchen below. Also, the upstairs will be a normal full 8ft. ceiling
Investor / Vendor · San Diego, CA · Member since 2016 · 1k+ posts · 949 votes
9y
Hi Jonathan, great job with the pics and running the numbers. Hope it's a home-run for ya. Looking forward to following you on your progress :) Grand rapids should rapidly appreciate as investor money keeps flooding in. I'm looking for a turn-key there myself. Best of luck!
Investor · San Diego, CA · Member since 2014 · 65 posts · 39 votes
9y
Love seeing your progress and the pictures. Good luck with the rest of the project and keep us posted! I'm looking at investing in GR once I purchase my primary residence out here in SoCal.
Real Estate Professional · Rockford, MI · Member since 2015 · 301 posts · 138 votes
9y
Great job Jonathan. When are you projecting to finish this up? If you need anything to help things along let me know. Sprint to the finish and lets see how this turns out!!
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
@Tim VandenToorn We were hoping to have things done before Christmas but that time frame is long gone by now I'm afraid. I'm thinking we might wait to list it in the Spring since the market is usually a little better then. We had some issues getting a permit from the city to start building but we should have that straightened out by next week I believe.
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
Hey @Brian Backus, The city has really been jerking us around on this permit. Every time we give them what they ask for they come back with something more they need. It's been ridiculous. With the holidays that doesn't help because I'm sure the city workers aren't around as much. My dad and I are getting really frustrated and we're really ready for things to get moving. Believe me, I'll be posting updates here when things get moving. Glad we don't have much holding costs right now or we'd be screwed.
Investor · Grandville, MI · Member since 2015 · 2 posts · 1 vote
9y
Hey Jonathon,
The rehab looks like it coming along nicely. Where in GR is it? I'm a local broker and investor myself. I love to know about homes not on the market yet that I can keep in mind for my buyers.
Investor · Grandville, MI · Member since 2015 · 2 posts · 1 vote
9y
That is a great spot @Jonathan Thrasher. I just put a duplex under contract on Logan in the first 24hr os having it listed. I also have an investor friend who owns a tri-plex at Eastern and Sigsbee and if there is ever a vacancy he has a list of people who want in. That is a hot spot in town right now. Look forward to seeing more progress.
Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
9y
if you're repair costs wind up being $80k and your ARV of $135k, with soft costs (commission, property taxes, interest, etc) of 10% of the selling price, you'd make $10k. that's still great for a 1st timer. I'd take it. decent margin.
be careful about agents telling you they are going for $145-$160k. can't hurt to try but look at recent SOLD comps. I doubt grand rapids appreciated that fast that quickly.
Grand Rapids, MI · Member since 2015 · 113 posts · 29 votes
9y
@Scott W. Recent comp sold for $153k and it was a horribly done flip with really bad craftsmanship and builder grade finishes. I'm not worried about the comps. It's a really hot neighborhood with tons of redevelopment. As of right now we've only spent a few thousand on demo. Construction hasn't started yet because of the delay getting the permit.