My First Flip (with Pics!)- Small $$ Profit - Big Exp. Profit
Hi All -
My first flip closed yesterday, mostly cosmetic, and I wanted to share my experience with you guys. This was done in Massachusetts. I'll try to make it concise but it may get a bit lengthy!! I pretty much broke even with this deal and I want to share where I messed up and will be sure to catch next time around! Let's get started! The numbers first:
Purchase Price: $430,000 (Auction) (3 Normal Bed, 1 Master, 2 Full Baths, 1 Master Bath, Pool, Cathedral Living Room Ceiling, Attached 2 car Garage, Swimming Pool, 3500sqft on 1 acre)
Outstanding Town Liens: $94,000 (I knew this as this was announced at auction. I thought it was a mistake. But taxes are about 10-12k per year on this property and the previous homeowner was delinquent for several years)
Cash for Keys: $20,000 (The homeowner agreed to vacate by a certain date to avoid a drawn out legal process, which they threatened to do)
Cleanout: $750 (The place was a complete mess)
Initial Cleaning: $150 (I at least needed to get the place tidied up a bit before painters would come)
Kitchen Repainting / Spraying Makeover: $11,500
Fresh Paint on Most Rooms (Ceiling, Walls, Trims): $12,500
Hardwood Floor (Sand, Stain, Re-finish): $4,500
New Carpets in all 4 bedrooms: $4,500
Lawn Debris and Hydroseed: $6,000 (and weekly lawncare until sale but that was cheap)
Electrician: $1,000 (Smokes Inspection and fixed a few recessed lights + other minor)
HVAC: $1,000 (Garbage Disposal Replacement, HVAC filter replacement + others
Window Cleaning: $500
Mold Remediation: $1,000 (Bathroom Ceiling)
Carpentry: $5,000 (Bunch of stuff)
Miscellaneous Materials: $2,000
Final Cleaning: $300
Staging: $4,500
New Washer and Dryer: $1,000
Total: ~$600,200 (+- 2-3k)
Listed Price: 669,000
Sale Price: 644,500
After broker + legal Proceeds: 606,000
Profit: ~6k
Time Held: Bought in April, Roughly 6 Months.
I didn't make much from this deal, but the experience I got was awesome. I tried to cheap out on the hardwood floor vendor, so I got a lot of negative comments from buyers and had to wiggle on price. The painting of ceilings was also unnecessary in hindsight, and think I could've gotten away with that. I also did a lot of the above things sequentially, instead of having multiple vendors in the house at the same time. I think I could have gotten away with certain items, especially the landscaping. I did that too late and needed to wait 3 weeks for the sprouting so it would show better.
PICTURES (BEFORE)
AFTER PICS