Share Your Success! Pics, Flips, and $$$

491 Replies

These are amazing flips!! What types of analyses do people do prior to purchasing with regards to the area? What is the best way to figure out which areas have the greatest potential within ones geographic vicinity. Also, what is the best way to figure out how much to invest in the property and how much to "fix it up" such that it is actually worth it for the investor? 

Hi i  bought a Tape of properties from the bank and i am happy to say today i close escrow on last one what a good feeling the tape had total of 13 properties in Southern California, 5 in San Diego were i live even one in my little town of Solana Beach, so step

1) Getting them out, Cash for keys or litigation i preferred cash for keys everyday

2) the estimate and finding the right contractor i was lucky enough to have 2 contractors working on my 8 properties at the same time some in Orange and in SD, estimate i come from a developer family and been in this for a while so i got good and knowing the cost.

3) the right real estate agent well i didn't put all my eggs in the same basket i went and got 2 killer guys in San Diego, and myself i have a license also so between us with 0 dollars into marketing just with right pricing and todays market the properties sold in average of 11 days. it was awesome

4) i also do consulting for first time investors and private equity companies, and banks so i was busy if your going to buy bulk focus 100% cause 2 jobs is crazy.

@DeAnna Nieves

I love that you kept that super cool stove! 

When I saw the before pictures, I was thinking, "Oh man, I hope she found someone to take that awesome stove." But you kept it in the condo, which is even better, and definitely not what I was expecting, lol. 

@Nathan Laughlin

Simple....Trial & ERROR.

I own a business where people in the construction trade often frequent, however turns out most of them don't hold the best credibilty. I first tried to use inexpensive labor to cut costs and maximize profit. Most of the craftsmanship was OK however even though I was saving money I was wore down with the lack of stability. These guys showed up when they wanted, wanted pay advances (which I promise to never do again...well I can't say never, I'm too nice). After all the stress all the multiple guys gave me, I finally hired a guy I knew who did great work, a little higher priced but dependable. After hiring him, my eyes opened up. Not only did he introduce me to another solid guy in the trade but that guy had a father who was a carpenter/painter (retired). My end results are near perfect. 

My crew came together by letting go of all the people that screwed me. Now I get work done faster, better & virtually stress free. My labor costs have gone up quite a bit but if that's the price to pay to avoid headaches, amen!

Happy to share my first rehab and hold property.

I purchased the property through a short sale for $230k 2 bed 2 bath 912sq/ft condo in Mira Mesa, San Diego I only worked on it on the weekends and had to remodel the entire unit (2 baths and a kitchen) it took 4 months of 2-3 days a week I paid cash so my only holding costs were $300 month hoa payment so $1500 the total rehab cost including property tax was $19600 after all the dust cleared I am into the property $250k the property value is 300k I pulled 225k out with a mortgage payment of $1650 which covered tax hoa and insurance and am renting it out for 1850 so for the $25000 that I put into it plus my sweat equity I am cash flowing $2400 my first year of owning.

@Nick Carter not to burst you bubble but rent - (mortgage plus escrow) does not equal cash flow.  You have no vacancy rate, maintenance, or cap expense.   Read up on cap expenses. I have no experience on cap expense for a condo but on small single family home in San Diego I use $300 month. WAG for condo is $100/month.  If I use my WAG cap expense + 5% vacancy + 5% maintenance you actually have small negative cash flow.  On the positive you built equity, property is likely to appreciate, and you have learned a lot and will continue the learning process.  

So I think you did fine but it is very unlikely to be cash flowing for a while.  

Good luck.  

@Mark Ferguson

Prior to watching the video I was curious why the rehab was so high. Then I saw the gutted house, and heard about the contractor problems. I am a newbie investor looking into fix and flips and this was an excellent resource. Thank you for posting it. 

Pete

The last deal I did was an unconventional flip with low risk in Thornton, Texas. Bought and sold within a week.

Purchase Price: $18,000

Rehab Cost: $0.00

Closing Cost on Purchase: $500

The wholesaler that sold me the deal already found the owner finance buyer, vetted them and set up closing between me and the soon to be buyer.

Owner Finance sales price: $34,500

Closing Cost on Purchase: $0.00 (Owner Finance Buyer paid all closing costs plus initial escrow for taxes and insurance.

Financing Terms: 10% interest, 15 years fixed

Monthly Mortgage Payment From New Owner: $370.94

Because I no longer own the house, I do not have to worry about PITI nor maintenance and management expenses! I could possible sell the note for ~75% of the value, but I think I will keep the cashflow!

Originally posted by @Pete Perez :

@Mark Ferguson

Prior to watching the video I was curious why the rehab was so high. Then I saw the gutted house, and heard about the contractor problems. I am a newbie investor looking into fix and flips and this was an excellent resource. Thank you for posting it. 

Pete

 That was a bit of a nightmare! 

I bought a 2 Flat in Forest Park, Illinois,  about a year ago for $155100.  

$25000 in repair and rehab costs.

Total cost $180000

Current appraisal at $255000

Choose to leave it as buy and hold with monthly rent at $3050

Mortgage plus taxes plus insurance at $1350 per month

Miscelleneous costs of vacancy, repairs, water bill etc. at $ 350 per month

Total monthly costs at $1700 per month

Gives me a nice cash flow of $1400 per month and great scope for future appreciation.

Forest Park is easily an A- class neighborhood.

@Atul Mohlajee ....very sweet deal....and great cash flow...I love Cash Flowing properties....a perfect way to retire early......

I always thought about Forest Park but not yet invested in there so far... 

how is the market around Forest Park???

thanks!

@Atul Mohlajee ...that makes sense...I also have my all rentals around the area I live in but now I started thinking being more open to other areas (and may be out of state) for better opportunities  and better cash flow...

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