23 Years Young, First Flip, $36K P-R-O-F-I-T
The last time I made a post I had just closed on my first house. I bought it to flip. The rehab took about 5 months. Once it was listed, it was under contract in 2 days with an over-asking price offer.
Rehab Scope:
- Exterior siding
- Extensive plumbing work
- Electrical upgrades (power panel)
- Stripped master bath down to studs
- Stripped kitchen down to studs
- Flooring throughout
- Texture/Paint
- Baseboard/casing
- All new electrical fixtures
- Plumbing fixtures
- Landscaping package
Lessons Learned:
- Do what you do best, and delegate the rest.
- You will make more money with a cell phone than you will with a hammer
- If you spend all of your time managing the project, you will finish the project and not have another project to work on.
- Flipping houses is a "job", not passive income, hire a GC, focus on deal flow.
Here are some rough numbers:
Purchase Price: $80,000
Rehab: $78,000
Commissions/Closing:$10,000
Utilities/Taxes: $3,000
Total: $171,000
Sales Price: $207,000
Profit: $36,000