Single Family Flip by the Numbers...Savannah GA

13 Replies

Hello BP

Here are some facts and figures of our latest SFR Flip. This was a little 1965 all brick 1350 sq ft starter home at 617 Valleybrook Drive, Savannah GA. Its location advantage was that it was within walking distance to local university.

Purchased from wholesaler for $73,734 on 12/31/2014

Repairs  $27,668 that's $20.49 psf which included new carpet and tile, paint, molding, bathroom cabinets, resurfacing tubs, new ceiling fans, lighting, doors, faucets, handles, granite counters, backsplash, appliances.   What was good already on the house was the AC, roof, windows which are normally big ticket items we did not have to spend money on.  The 2 best improvements we made were flipping a coat closet originally facing the living room 180 degrees to face the kitchen to be used as a pantry, and the installation of a center island and range which allowed us to add a dish washer that previously did not exist in the kitchen.

The property was originally marketed as FSBO and we got it under contract with 2 buyers, both of which fell through because they could not qualify. We finally listed it with a real estate agent who did bring a qualified buyer and got it sold. Selling price was $145,900 ($108 psf). Cost of sale was $11,754 including commission, buyer concessions and private money interest costs leaving a total profit of $32,744 which was over 30% total return in 150 days in to out. This flip took longer that expected because of the false starts with the FSBO unqualified buyers and delays in developing a new low cost granite solution. We ultimately purchased 3 standard precut slabs from Floor and Décor for $480 and had a local fabricator cut and install them with an under mount sink for another $975 in mostly labor costs and it turned out great.

This was a prototypical flip for us. The nice thing about it was that we used some private money and paid 10% simple interest and also used personal self directed Roth IRA funds which meant that the gain is mostly tax free. I hope this inspires someone to go out and pull the trigger on their first flip. The keys to success: don't over pay, don't over renovate, and price it at or below the market value for the area so it will sell fast!

Best Regards

Chris

Oglethorpe Properties Savannah GA

Great job, thanks for posting!

@Chris Licavoli

Unfortunately many investors with retirement funds are still not aware that their retirement funds can be invested directly in real estate not just mutual funds.

Originally posted by @Mark Nolan :

@Chris Licavoli

Unfortunately many investors with retirement funds are still not aware that their retirement funds can be invested directly in real estate not just mutual funds.

They are missing the boat if that's the case. I would be interested in converting my IRA into a 401k


@Chris Licavoli

Nice, keep up the good work?  Are you doing an Holds in GA how is the market down there?


Yes we are holding rental property. In the right neighborhoods 1% rent to value is the norm.  The keys are to avoid double property taxation via county AND city tax and to avoid HOAs if possible which only adds to your expense line. 

Great success story!

Chris 

Great job! I am looking at a home in the Savannah GA area but I don't live local. Its in the Georgetown area. What are your thoughts on that area if I may pick your brain and what are sales like? the prices are high and I don't have a good knowledge of the market. Going with the concept of don't overpay. This home does require work. 

Thanks in advance for your response.

Andrea Shields

Originally posted by @Andrea Shields :

Chris 

Great job! I am looking at a home in the Savannah GA area but I don't live local. Its in the Georgetown area. What are your thoughts on that area if I may pick your brain and what are sales like? the prices are high and I don't have a good knowledge of the market. Going with the concept of don't overpay. This home does require work. 

Thanks in advance for your response.

Andrea Shields

Hello Andrea

I actually used to live in Georgetown and can recommend it. It's a southern suburb of Savannah but not in the city so no city tax. It was built in the 80s and 90s mostly so most homes are in need of renovation which makes it a great rehab area. Please let me know if you are looking for a partner in this area.

Regards

Chris 

Congrats on your success. I'd like to network with you as I look to start rehabbing next year. Are you primarily buying from off-market deals via wholesalers?

Yes Alex we do so please send me any good deals that you want to wholesale and we will take a look at it

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