Updated over 9 years ago on . Most recent reply
First Flip Connecticut
Hey all, my name is Mike and I'm just getting into the real estate investment world.My first flip was purchased in April of 2015. I took the plunge like so many others after watching house flipping shows on TV.
Research brought me to biggerpockets where i learned all the things i thought i needed to know to flip houses like a pro. I listened to every podcast twice, read over 12 books on real estate investing, and lurked on the forums.
I purchased a single family residence that had been on the market over a year in Wallingford, CT. All the preparation in the world could not have made my first deal smooth sailing. I went through some ill equipped contractors, some dishonest subs who took the money and ran, and stumbled through a 70k full gut not knowing anything about construction while working a full time job.
This project took me a year to complete and i learned so much about the business. I have to say all the hassle was worth it because i didn't lose money on the first deal!
Purchase Price: 115,000
Sales Price: 245,000
Rehab: 70,000
Holding: 15,000
Closing Costs/Concession/Commission ~ 17,000
Numbers are rough as I didn't keep the best records with all the different contractors and the fact it was over such a large time frame, something I will be improving on in the future because records are so important.
I could not have done this without the help of my mother who partnered with me on it. She brought the expertise of being a seasoned appraiser and real estate agent in the area.
I have my next house under contract and will be keeping a running diary to keep myself accountable. Look forward to the continued learning that is provided on this site.
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#1 New Member Introductions Contributor
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@Account Closed
Those figures don't look bad for a first flip, especially considering the amount of time you spent on it. And yes, records are as important as it gets. The best part of REI is that you can claim deductions, but that isn't happening without records. The before-and-after pics look great. Good luck for your next deal!