SOLD! $73,000 Profit! Bought Labor day when others on Vacation

78 Replies

Hey Bigger Pockets!

Once again, I'm being horrible at posting on BP and its getting harder and harder to sit down and write anything on the forums.  Just know that I am investing a ton, and I post when I can.

As for this house! Lesson here, buy when everyone else is on vacation or taking time off.  I have always found deals during the holidays.  This gem snuck onto the MLS the Friday before labor day weekend, and by Monday (labor day), I had already submitted my offer, and Tuesday I had it tied up before anyone else bothered to compete (not technically true, one other offer went in that fast).  In my market of Seattle, a house on the MLS that is priced right for a rehab gets LITERALLY 15 plus offers on it in the first week, and almost always goes to the bidder with the least experience, meaning they paid way too much because they cant calculate rehab and are hoping the market will save them later when they sell.

The Deal:

I had to submit an aggressive offer in order to get accepted.  It was a home owner going through a divorce and listed on the MLS.  In this area, there are very few flips.  Its a hot area, with a lot of home owner to home owner sales, leaving little room for house flippers.  I got lucky on this one (Sammamish house for all the Seattle folks out there).  This house was mainly cosmetic for me, but we did have to open up all of the upper level in order to give it that large Grand awe experience.  This required adding the railing that you see in the pic above (was a solid wall), and adding that 10ft island in the kitchen (was a solid wall separating the kitchen and living room).  In addition to those items, we fully updated the baths, all the flooring, rebuild the backyard deck (no pic), sheetrocked over the wood ceilings, tile everything else, etc.  There were no surprises for us on the rehab, all straight forward and best of all, ON BUDGET!

NUMBERS:

Purchase: $405,000 (cash)

Rehab: $68,000 (budget was 70k)

Staging: $2000

Holding costs: $3000 ish

Selling costs (commission, WA excise 1.78% tax, escrow etc): $48,000

Sale Price: $600,000

Total Net Profit: $73,191


This was a very easy flip for us, and it went very well and so smoothly.  We closed on the Re-Sale today, starting the new year off right.  Big lesson on this house for me is that it was on the MLS.  I ended 2015 with over 40 acquisitions, and THIS house was the ONLY house I even bothered with that was on the MLS.  I have it in my head that there is nothing worth looking at on the MLS here in Seattle, and I still believe im mostly right on this, but when no one else was looking, I got lucky on labor day weekend.  I now believe that since the market is so hot, and everyone and their mother is an "investor" right now, I need to start diving into the MLS more again and aggressively pursue every deal if I want to keep my volume up. Happy 2016 everyone, and good luck to all out there!  Email me your deals!

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

Wowzers! Beautiful! Yes, I always like to do things opposite of the masses. Great find and congratulations! 

Congratulations and just out of curiosity how do you find your other deals?

Originally posted by @Charvick White :

Congratulations and just out of curiosity how do you find your other deals?

Hey Charvick!  Thanks for the post.  Great question, I find most of my deals off market through a bunch of wholesalers I network with.  I have spent a lot of time networking with people here in my market. We have a reputation of closing quickly and most importantly ZERO drama.  Because of that, we get sent a lot of the deals in our area to get first crack at them.

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

@Tarl Yarber , congrats on a job well done.

Your rehab formula looks similar to ours and I recognize some of the materials 😀. Good to see that I am following in good footsteps 😊

Only difference is the market seems so hot where you are that the % profit is lower. We had a similar rehab deal but bought the house for $220k and sold for $375k with $80k rehab here in the philly suburbs.

And I think we have it bad

Medium pc logoPercy N., Penn Capital

Originally posted by @Percy N. :

Tarl Yarber , congrats on a job well done.

Your rehab formula looks similar to ours and I recognize some of the materials 😀. Good to see that I am following in good footsteps 😊

Only difference is the market seems so hot where you are that the % profit is lower. We had a similar rehab deal but bought the house for $220k and sold for $375k with $80k rehab here in the philly suburbs.

And I think we have it bad

 Doesnt sound so bad to me! I wouldnt mind checking out your market and investing there.

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

@Tarl Yarber

  cost of capital ?  or do you just pay cash for this and you make what you make ?   most BP folks would need to pay for capital so their return would be substantially less.. reminds me of the flipping guru's way to figure out return  LOL..

But if your cash and carry dude,  then that's a great deal for sure congrats.

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

Great deals come to those who don't wait! Great job @Tarl Yarber . I got a foreclosure on Xmas Eve and it flipped for 44% ROI. Only bad thing is it makes my other deals feel inadequate lol. Great post!

@Tarl Yarber As always, KUDOS to you! I am not going to minimize what you do and say, "Oh, you're lucky, etc" because it takes a lot of time, energy and money to do what you do; especially in this EN FUEGO market. 

You don't need me to say this, but keep up the good work. It's nice to have something BIG on the books to kick off the New Year right. I hope to work with you in the future...cheers!

Wow great job @Tarl Yarber !!! Sometimes the perfect gems land right into your lap and everything goes well!! House looks great!! Keep up the good work.

Another awesome project congrats! Picked a couple up off the MLS last year that we're finishing up on and look like they will be good in hot areas of Seattle Queen Anne and Ballard. It can be done but, you have to be quick on it like this one!

Congrats! Great looking renovation!

Originally posted by @Jay Hinrichs :

@Tarl Yarber

  cost of capital ?  or do you just pay cash for this and you make what you make ?   most BP folks would need to pay for capital so their return would be substantially less.. reminds me of the flipping guru's way to figure out return  LOL..

But if your cash and carry dude,  then that's a great deal for sure congrats.

Hey Jay!  Yeah this house was cash.  But I use private money a lot like most of us do (don't usually do hard money anymore).  Even if I used private money at 10% annual, that's about 16k off for holding cost, so $57k profit.  Points would have eaten up a bit too if had to do that.  Problem with King County (seattle), is deals are getting SUPER tight here due to the amount of people wanting to buy houses, if I had to do hardmoney on this house, I would have still bought it.  This area of town is called Sammamish, and its a for sure resale area that I would do tight margins, but if it was Tacoma, would have passed if financing.  I know in your area of Portland its getting super hot down there as well, and deals are still solid margins, main reason I started buying down there too, and another reason im focusing more down in your neck of the woods.

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

Originally posted by @Chanté Owens :

@Tarl YarberAs always, KUDOS to you! I am not going to minimize what you do and say, "Oh, you're lucky, etc" because it takes a lot of time, energy and money to do what you do; especially in this EN FUEGO market. 

You don't need me to say this, but keep up the good work. It's nice to have something BIG on the books to kick off the New Year right. I hope to work with you in the future...cheers!

Thanks Chante (don't know how to make the line thing over the e)!  Great hearing from you again!

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

Originally posted by @Scott Pirrie :

Another awesome project congrats! Picked a couple up off the MLS last year that we're finishing up on and look like they will be good in hot areas of Seattle Queen Anne and Ballard. It can be done but, you have to be quick on it like this one!

Thanks Scott! Its hard to say no to Queen Anne and Ballard. Working on one in Madrona right now that I bought thinking it would be a tight resale at 850k, now around the block a couple houses sold that is pushing my ARV to 900-950k, this market is so dumb! And so good...get while the gettings good I guess...

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

@Tarl Yarber   Yup Portland is red hot as you know... margins about the same.. but you can always find that GEM... we moved to more new construction than rehab.. as our margins are set and leverage is with bank money at 6.5% on drawn funds.. so cost of capital on a 300k all in build is 6 to 7k for us max.

Always great when you make a profit... :)

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

I love seeing your threads....the rehabs you do are insane!!!!  Great job!

This is phenomenal-- the deal, the finished product. all of it!

Originally posted by @Jay Hinrichs :

@Tarl Yarber  Yup Portland is red hot as you know... margins about the same.. but you can always find that GEM... we moved to more new construction than rehab.. as our margins are set and leverage is with bank money at 6.5% on drawn funds.. so cost of capital on a 300k all in build is 6 to 7k for us max.

Always great when you make a profit... :)

 Awesome terms!

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

Originally posted by @Adrian Watkins :

I love seeing your threads....the rehabs you do are insane!!!!  Great job!

Thanks Adrian!  Ill try harder to post some more for you, these things take too long to write up on BP.  Maybe petition BP for me to make adding multiple photos easier!

Medium final file  jpg Tarl Yarber, Fixated Real Estate LLC | Podcast Guest on Show #189

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