35K Profit on my first flip! Before and After pics!

Real Estate Success Stories 240 Replies

It is possible after all! After months and months of learning, I decided to dive in to the world of flipping. After a month of searching and offering on properties, I found the winner. I bought it off of the MLS (10 other offers on the property day 1 and I got it.) Ballsy to pay more than everybody else? Probably. I'd like to think that it was the personal letter / picture of my cute dog that got me the deal...But it was an awesome deal even at the price I paid. (363K) I know, I know, that's very expensive in most markets. When I do new things in life, I always go all in.

This property needed a full renovation which I estimated to be 110K, and the after repair value was estimated at 520-550K depending on the finishes. The house needed all new HVAC, decks, siding, railings, flooring. I still went for it!

I shopped for a good HML for 2 weeks and finally found one with relatively good terms that was willing to lend to a first time flipper. I knew nothing about home construction, but decided it would be best to learn as I go. After 3 months of hard manual labor, financial stress, managing subs, the rehab was complete! I had 3K left to my name, 2 maxed out credit cards, 4K a month in holding costs. Like I said before... all in.

The property had multiple offers on the first day and closed 2 weeks later for 536K. I came in under budget, too! :) 

Salt Lake City is a tough market and really hard to find good deals, but if I can buy one on the MLS, use hard money, AND pay realtor fees aaaaand still make money? Anybody can do it.

Now I'm completely addicted.

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

@Daniel Beaulieu congratulations on your success! It looks like a fabulous job, especially for your first flip.

I am a little unclear on your exact numbers but if your net profit was $35k, that is less than 10% of sale price - a little too close for comfort.

What experience did you gain and what things would you change for your next flip?

Medium pc logoPercy N., Penn Capital | http://penncapitalgroup.com

Congrats Daniel! As a fellow newbie I'm honestly very happy for you. Considering you used hard money, what was your return on cash? Including what you swiped on credit cards and CC interest payments?

Have you accounted for your tax liabilities? I have never even been in a house that nice!

RESPECT!! You give new meaning to the phrase " Go big or go home". Congratulations.

Amazing job from start to finish. I believe in the all in effort also, you've earned it!

Originally posted by @Percy N. :

Daniel Beaulieu congratulations on your success! It looks like a fabulous job, especially for your first flip.

I am a little unclear on your exact numbers but if your net profit was $35k, that is less than 10% of sale price - a little too close for comfort.

What experience did you gain and what things would you change for your next flip?

I know I should shoot for 10%... But my thinking was if I would get a 35K profit from a fix and flip with ARV between 200-400k, I'll be putting the same amount of working to the one with ARV 540K. Going into the deal, knowing that I could make between 20-40K was pretty exciting and I was totally content with that, and would gladly take on a deal just like this one in the future. The knowledge I gained alone was priceless. Speaking of, here are the 2 most important lessons that I learned:

-Background check every single contractor. I was the victim of a scam where this local welder goes around saying he is going to build handrails for people, takes a deposit, and never delivers. I'm in the process of suing. His price was great, he seemed totally legit. ALWAYS ASK FOR REFERENCES AND DUE RESEARCH ON CONTRACTORS! 

-The cheapest labor is not the best. Having to fix the things that people screwed up may have cost me an extra 4 weeks on the project, therefore costing me more money in the long run. 

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

Originally posted by @Fareed Zahid :

Congrats Daniel! As a fellow newbie I'm honestly very happy for you. Considering you used hard money, what was your return on cash? Including what you swiped on credit cards and CC interest payments?

 The CC interest wasn't much at all... I only maxxed it the last month and paid it off right away when I got the proceeds from the sale. Here are the numbers: 

Down Payment:                  $33,000

Closing Costs:                      $2,000

Rehab Costs:                      $95,000

Total Cash Invested:         $130,000

Total Profit:                          $35,000

COC Return: 26.9%

COC Return if Annualized: 99.9% ... Just slightly better than the stock market.

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

You did less than 10% (6.5%), but hey, you made more money than you had before you bought the house! Good job.

You are absolutely correct about the contractors. In the process of taking a contractor to court for ripping us off 5-figures by not finishing a job. It happens. Also had to get rid of some horrible painters on a reno, and hire another one to 'fix' the job, but he did just that for us. Heard a great saying awhile ago;

"If you think hiring a professional is expensive, wait till you don't hire one." Absolutely true. 

I'm impressed, good job.  Don't worry about some of the mistakes you made, learn from them, don't make them again.

I never ever pay anyone up front, unless they are a huge legit company, and usually that means I put it on the credit card, so I have extra security.  Random joe blow company who wants 50% up front?  Nah.  

My philosophy is, I am building a house, I can't go anywhere, you can place a lien, and you can easily track me down.  You?  You are a random person and I am not going to spend one millisecond tracking you down if you screw me.  So either you do the work up front and then get paid or cya, plenty of others out there who don't need money up front.  

Michael P., Life of a Builder | http://TheBuilderLife.com

Originally posted by @Michael P. :

I'm impressed, good job.  Don't worry about some of the mistakes you made, learn from them, don't make them again.

I never ever pay anyone up front, unless they are a huge legit company, and usually that means I put it on the credit card, so I have extra security.  Random joe blow company who wants 50% up front?  Nah.  

My philosophy is, I am building a house, I can't go anywhere, you can place a lien, and you can easily track me down.  You?  You are a random person and I am not going to spend one millisecond tracking you down if you screw me.  So either you do the work up front and then get paid or cya, plenty of others out there who don't need money up front.  

 Well put sir. The next handrail guys to come also asked for half up front. I said NOPE!!! They still did the work for me anyways because they were glad for the business. 

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

Great job. I am sure that you had to overcome doubts since this was a risky project. If you have time to write, tell Newbies about your internal dialog with yourself and how you decided to leap. 

 Closing costs seem low to me. In Florida we have doc stamps on note and on mortgage. A 360 k house here would have about 4 k closing cost not including prepaid property tax.

Nice job. Lots of people never get that first deal done. As someone who is working on making that first deal happen I like to see others that make it happen.

Originally posted by @Scott Harper :

Great job. I am sure that you had to overcome doubts since this was a risky project. If you have time to write, tell Newbies about your internal dialog with yourself and how you decided to leap. 

 Closing costs seem low to me. In Florida we have doc stamps on note and on mortgage. A 360 k house here would have about 4 k closing cost not including prepaid property tax.

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

Doubts? Every day. The main thing I did to overcome fear was to make sure I was educated going in. I crushed Real Estate books for months prior to deciding that I was going to take this on. Also, it's important to have support. My Fiancé was amazing throughout this process and helped me stay the course with reinforcing positive thoughts. 

Whenever I had doubt, I tried to shut down my thoughts. A book that is never mentioned but is very powerful is "The Power of Now" by Eckhart Tolle. He advocates that thought is the enemy. When people overthink things, negative thoughts and emotions tend to prevail and they get that tiny voice that tells them they aren't good enough, or can't do it. So stop thinking! 

I also have nothing to lose. No kids, and I could always go back to sea if I lost everything. (Formerly a ship captain.) For people with kids and no free time, I imagine there are more challenges, but definitely shouldn't stop anybody. If I can do it, anybody can. 

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

@Daniel Beaulieu - Wow!  I'm not sure if I'm more impressed with the amazing rehab or the fact that you went so big the first time! Wow and wow.  

As a fellow flipper I have a few questions (if you don't want

1. What was your method of finding a good HML?

2. Did you do all the design work yourself?

3. What project management tools did you use?

I already can't wait to see your next project!!  If you decide to start blogging about your work please let me know!

Originally posted by @Scott Harper :

Great job. I am sure that you had to overcome doubts since this was a risky project. If you have time to write, tell Newbies about your internal dialog with yourself and how you decided to leap. 

 Closing costs seem low to me. In Florida we have doc stamps on note and on mortgage. A 360 k house here would have about 4 k closing cost not including prepaid property tax.

 Closing costs were surprisingly low. Here is the breakdown: 

Prorations / Adjustments: $74

Underwriting fee: $250

Wire Fee: $40

Title policy: $1231

Escrow fees: $400

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

Originally posted by @Elizabeth Wilson :

@Daniel Beaulieu - Wow!  I'm not sure if I'm more impressed with the amazing rehab or the fact that you went so big the first time! Wow and wow.  

As a fellow flipper I have a few questions (if you don't want

1. What was your method of finding a good HML?

2. Did you do all the design work yourself?

3. What project management tools did you use?

I already can't wait to see your next project!!  If you decide to start blogging about your work please let me know!

1. I called local HMLs that I had met at SLC REIA, and even reached out to my attorney since I know he lends to people. None of them believed I should take this on, but I was confident. Perhaps overconfident. I actually ended up finding my HML through Bigger Pockets market place! I must have applied / called at least 10 before I found one that could do it in a week with reasonable rates. I didn't realize that most of them don't want to lend to a first time flipper!

2. I did all the design work myself. I couldn't decide on a front door color so I reached out to a designer. She told me to paint it bright yellow, so I quickly fired her. I go on Houzz and look at pictures of kitchens / baths that I love and just try to replicate it with the most affordable materials. 

3. Project management tools... Not sure exactly what you mean. Excel spreadsheets? Yes. Clipboard? Check. If there is something I'm missing that I should know about, please let me know! 

Do BP forum posts count as blogging? I probably wont go beyond that. I'll be in Memphis Monday afternoon to check out a rental property that I have under contract. A "Pig" if you will. I'd love to meet up and pick your brain about the Memphis market! 

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

@Daniel Beaulieu Great job. Congratulations. I love to hear success stories about flips. Did you partner with anyone or have any mentors coach you through the process?  

Medium blue equities logo webShiloh Lundahl, Blue Equities, LLC | 480‑206‑1209 | http://blueequities.com

Originally posted by @Shiloh Lundahl :

@Daniel Beaulieu Great job. Congratulations. I love to hear success stories about flips. Did you partner with anyone or have any mentors coach you through the process?  

 I didn't have mentors or coaches, or partners. I wish that mentors who are willing to take from their highly valued free time to hold my hand through a deal would magically appear. This simply isn't the case. Moving forward I hope to network more and get better systems in place, but I will probably always be without a partner. One "Guru" told me something once that really resonated: "The fastest ship to sink is a partner ship!"

Daniel Beaulieu, Nashville Homeowner Solutions | (615) 930‑1065 | http://www.nashvillehomeownersolutions.com

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you