First Flip in Phoenix Arizona!
Hey BP! I just wanted to share my experience on my first flip in Phoenix, AZ! When I say this is my first flip, this isn't counting the previous live-in flips that I had previously done (which was fantastic for learning the whole process btw). Anyway, here are the details -
Purchase Price $62K
Rehab (including holding costs) $43K
List Price $175K
Sale Price $174K
Net Profit (after all commissions, closing costs, etc) $59K
I had found this deal by doing my own direct mail marketing campaign, which took a few months to get the right deal. I was very picky on this first one because I wanted a "slam dunk" for my first one, with very little risk of losing money. Unfortunately, I probably passed up a couple of other deals because of this, but am definitely ready to take on more risky flips in the future.
The house was a pretty standard flip - 1730 sq feet, 3 bed, 1.5 bath. Needed all the usual cosmetic upgrades - kitchen, bathroom, flooring, paint, etc. The only downside was that the house was built in the 1950's with an addition built in the 70's. So this meant spending $ modernizing the place, including filling in a sunken wetbar in the main living room that was straight out of the 70's!
The rehab took about 5 months from beginning to end, but I definitely was slowed by my "real job". Probably should've only taken 2-3 months to finish. I listed the house myself, through a flat list agent, and got a crazy response in the first weekend - 9 offers, with 7 over asking price! I never imagined to have that good of a response, but apparently sub $200k houses in Central Phx are selling like hotcakes. After inspection, we ended up renegotiating for the two 20 year-old air conditioning units on the house, which I was okay with. I figured comps wouldn't come in much higher anyways, which was right on with my asking price (appraised at $175K). Nailed it!
There were definitely a few things I did wrong which unfortunately cost me $, but I'll mark it up as"educational expenses". This post is getting pretty long, so maybe I'll save those tips/lessons I learned for another day.
Lastly, I want to give a huge shout out to the BP community! For about a year, I lurked on these forums and listened to countless podcasts that really gave me the confidence to start this journey. Thanks everyone! Now it's time to find the next deal!