I've been on this site for quite some time and wanted to announce my first deal. It was a little more unconventional, as I lived in the house while I worked on it and the flip was over the course of about 8 months. It's the only way I could do a flip, as I was 26 when I purchased and didn't have the funds to float 2 mortgages.
I purchased a house in Boston in 2013, it was a single family row house with 2 full bathrooms and 2 bedrooms with a fully finished basement.
Here are some details:
Small outdoor patio
Small galley kitchen
No Condo Fee
Prior to me purchasing the house it was actually completely re-done. Whoever whoever did the work did not spend their time or $ properly as the work was pretty bad.
The bedrooms and bathrooms were fine, but the kitchen was extremely small and not functional. There was also a wall that took up a lot of space in the dining room and blocked 2 windows from the rest of the house.
I ended up taking the wall down, which was a lot of fun! I also ripped down the entire ceiling as it was a ugly swirl pattern that did not look very clean. I put up a flat ceiling with a smooth finish, and sunk 8 new lights in for better lighting.
There was some strange framing up there too that I ripped down. You can see that whoever framed it out didn't even use 2x4's, they used small 2x3's to save money!
After ripping out the wall, there was so much more light coming into the house!
From there, we pulled the kitchen around the wall. We replaced the electric stove with a gas stove and bought top of the line Bosch appliances. We also installed top of the line cabinets, with soft close doors as well as granite counter tops.
Here is the finished kitchen.
We had the entire house professionally painted and all of the floors were completely sanded and re-finished.
Overall I'm extremely happy with how the house turned out and the new owner should be very happy with the quality of the work. There is plenty more that they can do to the house and other rooms, so there is still a lot of potential there.
Here is where we ended up:
Asking price: $529,000
Investment (Work, materials etc): $30,000
I used the money to purchase a new home, and I've since started marketing for flips to do on the side. I've gotten a few leads, but nothing too appealing yet. My goal this year for 2015 is to try and get 2 houses done!
Great Job! @Matthew Gallo
What was the final profit on the whole project? When I did the math it looked to be $90k, but were there closing costs? Agent fee's and such.
No matter what though that it is a strong profit for something that you lived in.
Nicole Pettis, Novu Capital Investments | [email protected] | 614.638.8635
Wow, 456k is a big chunk of change for a 26 year old. But I guess that is just the Boston market. Where did you get the remodel skills? I am assuming you have a degree to qualify for so large a mortgage. Good job, by th way.
Congrats @Matthew Gallo . Not bad...almost $50k over asking.
Congrats, Matt! Nice job! Are you a contractor by trade?
What did you think the ARV would be when you first bought the property?
It is awesome you got 50k over asking. Parts of the Boston market are on fire!
Paul Sorgi | 781 534 9610
Matthew the flip looks awesome especially the kitchen.
The spread $120k for a $576 ARV seems a little tight for me although I don't do my own work. I barely make 25-40k normally with that type of spread doing $250-300k ARV houses. At $576 I'm assuming $45k is closing costs. Did you give a concession to the buyer? What were your mortgage costs and other holding costs. And what were your closing costs up front to buy?
Just trying to see what we're the all in costs and if the deal made sense for the money and time you out into it.
@Matthew Gallo Excellent post and nice first time deal! Thanks for sharing.
Wow great job. That kitchen looks like what I want to do when i have to remodel a kitchen.
You said you wanted to find some more places to do on the side. What are you currently doing?
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