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

491 Replies

My first success story was a house in Longmont that I flipped last year.  It was a fairly rundown house on a road crowded with cars and along a train track.  The neighborhood wasn't great, but the market was (and still is) desperate for new homes.  Here are the numbers:

  - Purchase price: $150,000

  - Expected Rehab costs: $20,000

- Expected ARV: $210,000

  - Expected Profit: $15,000

It was my first flip, and I didn't expect to make a lot, but I needed to get the experience and was fairly confident I would make some money.

Here are a few before pictures:

And here are some after photos:

And the final numbers:

Rehab costs: $31,000

Sales price: $231,000

Profit: $24,000

All and all, I was happy with the result, though I know I got lucky on appreciation.  I learned that I need to work on estimating rehab costs better and control costs during the project, and also learned a ton about the start to finish process.  I got the education I was looking for, for sure.

Paul

@Paul Ballew very nice job and congratulations!  The house looks great. Having lived in Longmont until recently I have an idea of where this is and you have definitely improved the neighborhood. I wish you continued success and thanks for sharing your story!  It inspires us newbies. 

Originally posted by @Rhonda Cruz :

@Paul Ballew very nice job and congratulations!  The house looks great. Having lived in Longmont until recently I have an idea of where this is and you have definitely improved the neighborhood. I wish you continued success and thanks for sharing your story!  It inspires us newbies. 

 Thanks!

Hey BP,

I recently completed my first flip which was a fourplex in Kingston, Ontario, Canada. I learned a pile and it was successful.

Purchase Price - $300,000

Rehab - $230,000

ARV - $618,000 (sale price)

Net profit - $65,000

@Matt Geerts

@Nik S.  

Makes sense. I've worked in & around the contractor industry & that's true across the world I'm sure. There are so many unreliable people out there who really only want to work when they are down to their last dime. I think I've decided that I'm going to go do contracts between me & my contractors because I've had issues with stuff not getting done in a timely manner & having to hound my guy to go back & fix something like it's supposed to be. I've read that some people will withhold the final 10% or so until all work is completed. I thought that through & I think I'll do the final 10% so long as it's under $1000. How do you handle that? 

Here is one we did recently:

3bed 1 bath 980 sqft SF home

Purchased 23K from owner

Private money borrowed 30K 

closing cost and mis fees and back taxes 1.5K roughly

Rehab 5.5K and 1K of my own - 6.5K total rehab - because i was over budget :-(

all in for 30K borrowed and 1K of my own money. ARV of property 70K.

Rents for 821 a month. 800 is the rent and they pay the 21 to us for renters ins.

Refinanced the property after 6 months and paid back private money and got 30 yr fixed and payment of 550 PITI with a mtg of 54K. Was able to take the cash out from refi and buy another duplex and we are currently renovating the property.

Only 1K out of my pocket due to fix up costs .  Small numbers, but they add up.

Originally posted by @Tyler Bruce :

Hey BP,

I recently completed my first flip which was a fourplex in Kingston, Ontario, Canada. I learned a pile and it was successful.

Purchase Price - $300,000

Rehab - $230,000

ARV - $618,000 (sale price)

Net profit - $65,000

Beautiful remodel, Matt!  Congrats!

Paul

This post has been removed.

This post has been removed.

My favorite house flip:

Purchase Price: $205,000

Rehab: $60,000

List Price: $395,000

Sale Price: $430,000

Net Profit: $145,000 (after closing costs)

on to the next one!

Originally posted by @Mark Ferguson :

I sold a flip last Friday. It was a doozy! I bought it in April of 2014 and yes it did not sell until February of 2016 and no it was not rented. Had huge problems with contractors and I didn't get started working on it for months because I had too many flips going. 

Bought it for $75,000

Repairs were about $70,000

Carrying costs about $5,700

Financing costs about $7,000

Selling costs about $8,000

Commission saved -$2,200 (since I am an agent and got paid a commission when buying)

Seller paid closing costs $2,000

Selling price $220,000

Profit about $50,000

Am I allowed to post before and after videos?

https://www.youtube.com/watch?v=FnFtorEyG78&index=...

https://www.youtube.com/watch?v=O1K2m7SxzlY&index=...

 Great job!!! I'm so impressed by your resilience from having to deal with crappy contractors but still selling and making profit after nearly two years. 

Originally posted by @Tyler Evans :

This was my 4th flip. We negotiated on the price to buy for $186000. Did all the work in house with my family who is all carpenters. The 3 of us worked 5 weeks 16 hour days and the finished project turned out amazing! Here is the link with before and after pics. She lasted 2 days on the market before having a full price offer. We are still filling out the paper work but a purchase of $186,000. Rehab cost of 17,000. With a gross profit of $57,000! 

http://www.zillow.com/homedetails/4100-Sw-Flintroc...

For all you flippers in the Kansas City area and Denver area I do custom terrazzo countertops. Mention bigger pockets and we an give a discount off the total project. 

 Great job. Beautiful finish!!

Originally posted by @Chad Urbshott :

Here is one we just listed, a fairly standard rehab:  

Purchase - $75K

Rehab - $35,700

Holding costs - $4,100

Buy/Sell costs - $11,600

List Price - $149,900

It's listed $5-$10K below comps so hoping for a quick sale.  

BEFORE:

     

      

AFTER:


     

     

      

 Nice!! How many beds, bath? Did it sell yet?

Originally posted by @Michael Lam :

My first flip was when I was in my late 20s.  I purchased it for 222K on a short sale,  held it for 1 year doing all the newbie mistakes you can think off.  It was a complete gut out, but at the end I couldn't believe I made profit.  I ended up selling it for 336K a year later.

I'm on my 2nd flip now and currently negotiating a pocket listing sale.  Fingers cross I get this.  I'm planning to do a blog every step of  the way here or on my blogging site:  

 Congratulations on your first flip!!! What mistakes did you make?

Originally posted by @Peter Amour :

this was a hoarder house that took us way longer than we wanted because we have college rentals turning over and also finishing another flip . i think we were about 10 months , part of the reason was i found a gold coin the first 2 days going through stuff ,and wanted to look at everything , that was pretty much the only valuable in the place :( did find some cool historic things from war , but not much value . we paid about $150k , we put in about $70K ( including trash removal, taxes, holding costs ) and sold for $293k .

 This by far is the BEST before and after I have seen thus far. The before was scary lol. Great job!!

Originally posted by @Rick Turman :

Just wanted to share the good news with my BP Family.  You all told me to Jump, and I said how high!  

I took the leap away from analysis paralysis last week as I have been eye balling an REO during Fannie Mae's First Look. let me tell you.... Those 15 days were the longest day's of my life haha. When it hit the MLS, I was the second offer in, however my MPP allowed me to offer asking price. The first offer turned out to be a low ball offer and I just found out today that my offer has been ACCEPTED!

Here our my Layout:

Actual Purchase Price: 93,900 ~4,000 less.
I know we can sell it for 194,000.00 but we will go a little above comps.
Fixed/Holding Costs around 26,340/@6 Months
Rehab Costs: 40,000
Leaving a profit of 30,000 for our first flip

If we stay firm on our Rehab costs, and we sell higher than comps (Perfect world) We may make close to $40,000 or $50,000.   Wish us luck!

Our last question for you is.... What's next?  Does anyone have a process laid out on the steps after the offer has been accepted?  J Scott has a process list from his first book that I have outlined, but want to hear if any others have amended to that list and or found something that is easier?

Looking forward to everyone's responses!  Happy Flipping!

 Congratulations on taking the leap!!! I will be taking mine soon!! 

What is MPP? And what is included in the fixed/holding cost?

Originally posted by @Shay Kent :

Our FIRST one! 

Bought at $245,000

Repair $75,000

Sold $387,000

It's amazing what you learn on the first one. We made some money on it, not as much as I'm sure a seasoned flipper would have, but for our first one, I'm calling it a win! 

 Congratulations on your first... It's beautiful!! I read that Denver, CO is one of the top markets for investing. Are you near Denver?

Congrats. This is the kind of flip with little risk.  Work on internal remodeling put it on the market while waiting for the prices rise.

I may add your got the year written wrong Dec 2016?

Sam Shueh, San Jose, CA

Originally posted by @Paul Ballew :

My first success story was a house in Longmont that I flipped last year.  It was a fairly rundown house on a road crowded with cars and along a train track.  The neighborhood wasn't great, but the market was (and still is) desperate for new homes.  Here are the numbers:

  - Purchase price: $150,000

  - Expected Rehab costs: $20,000

- Expected ARV: $210,000

  - Expected Profit: $15,000

It was my first flip, and I didn't expect to make a lot, but I needed to get the experience and was fairly confident I would make some money.

Here are a few before pictures:

And here are some after photos:

And the final numbers:

Rehab costs: $31,000

Sales price: $231,000

Profit: $24,000

All and all, I was happy with the result, though I know I got lucky on appreciation.  I learned that I need to work on estimating rehab costs better and control costs during the project, and also learned a ton about the start to finish process.  I got the education I was looking for, for sure.

Paul

Great job!! Your profit and sale price turned out to be more than you anticipated. Winner in my book! 

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