Bought our first flip for $70,000 wholesale +$5800 commission = $75,8000 total cash outlay. Did the painting, landscaping ourselves plus a few minor construction projects and contracted out the rest. Total rehab costs plus buying, utilities,etc was $104,500. Bought the house the beginning of April, put it on the market beginning of July, sold in 12 days for $163,000. After all closing costs( we got cushed in closing costs) walked away with a check for $148,000... made$43,500. Next one we are contracting out more of the work. We are ok with a smaller return because we killed our selves in doing the work because we both still hold full time jobs!

Hi everyone,

My partner and I just completed our FIRST FLIP and we are so excited about it!!! We have both been in construction for nearly 10 years now, and have been talking about trying our hand at our own projects for awhile. Well, we finally took the leap and it was worth it! It was not easy, but we are so glad we did and now we cannot wait for the next one!

$163,000 - Purchase Price

$133,000 - Total Cost (Reno & Operating Expenses)

$17,000   - Commission

$378,000 - Sale Price

$65,000 - Profit

21% - ROI

The project took about 6.5 months. 3 bed, 2 bath 1,400 sq ft single family house outside of Greater Boston.  Take a look at the photo's and let me know what you guys think! Also, a big Thank You to everyone who is a part of this great community!

Originally posted by @Steven Rubino :

Hi everyone,

My partner and I just completed our FIRST FLIP and we are so excited about it!!! We have both been in construction for nearly 10 years now, and have been talking about trying our hand at our own projects for awhile. Well, we finally took the leap and it was worth it! It was not easy, but we are so glad we did and now we cannot wait for the next one!

$163,000 - Purchase Price

$133,000 - Total Cost (Reno & Operating Expenses)

$17,000   - Commission

$378,000 - Sale Price

$65,000 - Profit

21% - ROI

The project took about 6.5 months. 3 bed, 2 bath 1,400 sq ft single family house outside of Greater Boston.  Take a look at the photo's and let me know what you guys think! Also, a big Thank You to everyone who is a part of this great community!

Nice looking work and profit!  But why didn't you keep the 70's wall paneling?  Lol.

@Steven Rubino nice!  I can't wait until I can post about my first deal.

How did you source the home, and was it in Stoneham?

Blake

Originally posted by @Blake Denman :

@Steven Rubino nice!  I can't wait until I can post about my first deal.

How did you source the home, and was it in Stoneham?

Blake

Hey Blake - Thanks! I can't wait to see your first deal too! The house was in Maynard. We actually found in on the MLS, it was a foreclosure that wasn't getting a ton of interest. Are you looking to do flips too?

Originally posted by @Steven Rubino :

Hey Blake - Thanks! I can't wait to see your first deal too! The house was in Maynard. We actually found in on the MLS, it was a foreclosure that wasn't getting a ton of interest. Are you looking to do flips too?

I'd have been bowing down if you'd found a house in that condition in Stoneham for that price haha, but still an AWESOME deal!

Great to see that people are finding deals on the MLS in Eastern MA too!

I guess I'd define my strategy as a bit of everything - looking to build some capital wholesaling, then flip or hold properties I find depending on how the numbers work out.  Much more interested in the long term benefits of holding though.

Also planning to buy a 2-4 family in Eastern Essex County this winter to househack.  Looking for $100+/month/unit cashflow in a value-add property.

Hi everyone.

We just completed our first project in Hilo, Hawaii (96720) and wanted to share our story.

We found a bank-owned, single family house that had been sitting on the MLS for a while. It was cash only, overpriced, and the worst house in the best neighborhood.

We used all we had learnt from the past 6 months of reading books and listening to podcasts and made an offer 17% under the asking price - $300,000. The bank went for it and we pulled money out of our savings and HELOC to purchase and renovate (+$60,000). 2 months later the property is worth $425,000 and we have a renter paying 33% more than we had estimated!

Last month we refinanced out a large chunk of the cash with a local credit union and plan to use that to close on our second house in Hilo next week - another fixer-upper.

We love this strategy and as long as we can keep finding good deals in Hilo we plan to just keep going.

Thanks for reading and let me know if you have any questions.

David

Wow!! It looks amazing!!  Great Job!! Congratulations.  I am looking for properties in Florida for investors to do the same.  Wish me luck!!!

We acquired this property off MLS. I loved how it turned out and we made a nice profit but it took longer than expected due to several hiccups along the road (contractor mistakes, not being on top of the project management as much as we should have been, unethical inspectors, etc.). We definitely learned some valuable lessons along the way and plan to implement some changes on our next flip.

 Purchase Price 182k

Rehab 65k

Holding Costs $3,800

Closing Cost 13k

Sales Price 335K

Profit $71,200

(Being a Realtor I earned roughly $5,500 on the commission when purchasing and saved 3% on selling commission which is why cc is so low)

@Jodi G. Congrats that looks great! How did you fund the deal/rehab costs? Cash? HML? Private Money? Can you give a broad breakdown on the rehab costs? Was the property a REO/HUD property or on the MLS for a long time.

Look forward to learning some more detail! Congrats again! Can't wait to hear about your others in the future

@Kevin Pruitt Thanks! I funded the deal and rehab costs through a commercial loan with a local bank. Put down 25% of purchase price and rehab costs were rolled in. 1% origination and 5.75% interest only for a year. We had multiple offers within the first two days as the market was hot during July. We were in contract at 356k but the buyer had 5 different inspections one being an unscrupulous mold company that said there was mold in a sunroom (which in all actuality was like testing a basement or garage as this was not an air conditioned space) The company used invasive air sampling and also poked over 350 holes throughout the residence with their moisture detector. Long story short, we had to take the home off the market to get a TDI mold remediation expert to refute the inaccurate report and wait for this company to make repairs to the damage they caused to the property.

By the time we got all of that ironed out the market had significantly slowed down and showings were few and far between. I went back to the bank and restructured the loan to be amortized over thirty years and was intending to hold for a rental for a couple of years. 

Thankfully another buyer came along and I don’t have to use that exit strategy. We are set to close in an hour and I couldn’t be happier to get this one off my books. 

As for acquiring the home it was actually listed on mls for 189k, I offered 185k the first day in the market and negotiated another 3k off during option period. As you may know Houston experienced significant flooding a year ago and this Home took on less than an inch of water in the back bedroom because of debris clogging up the French drains, no other homes flooded in this neighborhood or ever have for that matter. The two conclusions I can come to is the agent was using other discounted flood properties as comps and shouldn’t have done so or she was just inexperienced. I’ve actually picked up three mls properties this year that were steals and agents were not familiar with the particular neighborhoods and priced them significantly below market value. 

@Jodi G.   Great job Jodi.  I actually saw that listed as a For Rent a week or so ago when doing some research (we are under contract on a smaller property not too far away).  The pics were amazing!  Glad you're able to get out on your own terms.  Best of luck!

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@Jodi G. Gorgeous property, I love the remodel! Hiccups are to be expected and essential to growing!