I did this flip a while ago but never posted anything because it felt like bragging. However I find myself reading and enjoying, and learning from other members posts almost on a daily basis so I figured this is my chance to give back! Ill give some basics on the transaction and show some pictures. I hope this helps anyone who is afraid of getting started but has a passion for real estate success. The home was listed just under $60k REO for a while, then it dropped a little and I finally made an offer of $20k. After some back and forth I got it for $40k. It was listed as a 2BR 1bath 850 square feet I think. The sq ft was just the upstairs as there was a large rec room and a bonus room downstairs that added a lot of square footage. After acquisition and closing costs, renovation, holding costs, loan costs (cash out refi because I was planning on renting it) I was in it for about $115k. I sold it my self with no realtors involved for $190k giving the buyers $5k at closing. The home took quite a bit of work both inside and out. Close to close was about 9 months. There was A LOT of ups and downs but all said and done it was definitely worth it. I just closed on my second investment property last week and contractors are getting lined up to get started renovation. Below are some pics-enjoy!
Well done man, how much did the rehab cost?
Rehab costs were about $55k.
Great Job. More of these success stories have to be heard to shoot down the naysayers that say "it can't be done." You are living proof what hard work and taking massive action leads to.
Now it's time for an encore to keep the momentum going. Good luck on the next one.
Congratulations! It looks great. I am a buy and hold investor, but I would love to try a flip someday. I love listening to the podcasts about people who flip and I am always intrigued by their stories. Thanks for sharing your success story.
Your welcome Theresa. Thanks for reading!
what a story!
Thanks for posting the details - it's not bragging at all, it's inspirational!
I like how the outside make-over makes it look a lot larger somehow (not just the photo scaling), maybe from the color choice? First impressions count, and it looks a lot more delicious now than before. You have an eye for this, it seems.
Take it easy!
@Theodore Renka Awesome deal man! Congrats. Adding square feet sure does create a nice opportunity. What did you do with the rec room and bonus room square foot additions? What is the new bed/bath and square foot?
The rec room and bonus room were already there (I just renovated them) but the listing didn't count them in the square footage. I think that scared away a lot of competition on the buying part. When the house was appraised they said it was about 1700 square ft and the bonus room could easily be used as a third bedroom as it had a big window and closet.
First of all, Congrats. $70k is more than my 3 flips will be combined. Although my flips were cosmetic condo flips and each took about 2-4 weeks of work.
I have some specifics to ask you though as Im trying to make the move into sfr with a paydays of $40k+
Like i mentioned i have only done cosmetic flips so ive nevr done anything major like siding and a kitchen.
My questions (whether you want to share publicly or privately or not at all)
How much did you pay to re do the exterior of the house? Could you break it down?
-How much roof and how much for siding? Does this include materials and labor or just materials?
-Did you add a bedroom or bath room to the house?If so, how much did you roughly pay to put up walls for a bedroom and and how much to install an new bathroom?
-Did it take you 9 months from teh moment you had it under contract to the point where a check was in your hands or 9 months for the rehab?
I have yet to cross the bridge of doing major work like what you have done and my lack of number knowledge is something that's holding me back.
Congrats, job well done. did you pay 40k cash or you financed it?
I'd be happy to share Robert. The siding was around 10k and the roof 6k, including material and labor. The nine months was closing to closing. I used Home Depot for the siding and roof as they provided 2 years at 0%. I did not add any br or baths. Rehab took 4-5 months. The whole process would have gone much faster but I had a lot of issues with the town. Hope this helps!
The 40k was "cash". Quotes because I got 30k off a credit card at 0% for 12 months direct deposited into my checking account. The other 10k was my own money. I had to be very creative with the costs as I am not a rich man! At least not yet!!! Lol
What do you mean you're not a rich man? You now have 70k to use as a capital reserve fund. Well, maybe 65k as hopefully you treated yourself a little after a home run like that.
Great story. And, yes it is bragging, but its more about sharing. Always helpful to stay motivated when you can read other investors' success stories. There are always times as an investor where you wonder whether you should just take a break for a minute.
Then you see stories like this and just think you're being lazy and need to get back to it. The good thing is, investing is one of the few types of work that most people truly have a passion for. Doesn't feel as much like work as it probably should. :-)
Congratulations and glad to see you got #2.
btw: That is a perfect example of why it pays to go look at houses. Whether they're a potential candidate or not. Sometimes you find something that the listing or the pics just don't show and that is the difference in stealing a house or not.
Thanks for sharing! Post like these are inspiration not bragging. Gives hope to those who have not succeeded yet with real estate investing.
the realtor, no doubt, listed at 800-900 sq feet cuz the lower level is not counted as living space unless it has an outside door (which is the stupiest rule in the world).
but the appraiser does definitely give one a bump in the price.
just goes to show, despite the bottom going up on foreclosures, there will always be deals out there for those who look hard for them.
thanks everyone! I appreciate the feedback!!!
Great job, and congratulations.
Did I miss anything, where is this house located? ....no specifics, just state and metro area.
@Theodore Renka Wow! Congrats! I always thought flipping looked intimidating, so it's nice to hear it can work out well. Did you do a lot of the work yourself, or did you mostly use a contractor?
It's in northern nj
thanks Ingrid ,
I did the tiling, some demo, and a bunch of punch list stuff. I used contractors for the rest.
Congratulations! Looks like you did a great job! Its been several years since I did a flip but I've been getting back into it and have a few irons in the fire in northern NJ too! Keep us posted as your next project develops
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