My Very First Flip Just Went Live on MLS

121 Replies

Hello investing friends! My very first "flip" went live on MLS today. What a great learning experience and it was definitely very different than what I've seen on HGTV. :) Nonetheless I LOVED the process.

Before/after pics attached. It was A LOT of work but the home cleaned up real nice.  Now I'm hopeful for a quick sale!…/P…/2801-Darr-Ct-95667/home/22299722

A shout out to Brandon Turner for his book on REI that inspired me to understand the seller's motivations and concerns and then put together a creative offer to address them. That piece of advice helped me to land this deal despite several higher cash offers that were submitted.

Here are some pics along w/my before & after collage.  

Looks stunning! Best of luck on the sale! 

Looks awesome, great job. Fingers crossed for a quick sale.

What a great property and beautiful job bringing it up to its full potential. 

As requested, here are the #s as it stands today.  I'm sure the profit will be something less than this once I close.  I have a very long holding period on this project since it was incredibly difficult to find an available contractor.  It took me 5 weeks of contacting 35+ contractors to find one and work didn't begin until ~8 weeks after close.  The contractor also went over his projected timeline by 5 weeks.  Partly due to weather and partly due to his double booking his time.  Definitely a learning experience!

Purchase / Sale

   Purchase Price (Act)  $180,500

   Sale Price (Est)  $395,000

Fixed Costs

   Buying Costs (Act)  $14,267

   Holding Costs (Est - this incl loan i pmt)  $25,223

   Selling Costs (Est)  $23,550

Total Fixed Costs  $63,040

Repair Costs

   Finish Materials  $22,924

   Labor / Equip / Build Materials  $58,158

Total Repair Costs  $81,082

Total Project Cost (Less selling costs & ipmt)  $282,203

Total Investment  $324,622

Profit  $70,378

Also, here is some more info on how I found the deal. I found it via a Zillow alert that I have set up for my area. The previous owner's daughter listed it FSBO on Zillow 10 days before it was due to go to county auction for a tax lien. I was one of 5 offers within 3 days and they told me that they selected my offer over other higher cash offers because mine was the most creative & did the most to help them out in a difficult situation. I offered his full asking price but in addition to my "cash offer" I also offered to pain the lien, to hire movers for him, provide moving supplies, provide a 10x20 storage paid for 3 months. Aside from the lien, it was only ~$2k for everything stated. Since we closed in 7 days and he had so many "treasures" I gave him and additional 12 days to clear whatever he wanted from the inside of the home and an additional 30 days to clear the outside. Anything he didn't want I would take care of disposing myself. This was a bit of a pain for me since there were several vehicles left on the property that did not have paperwork. Anyway, the idea behind understanding the seller's motivations and concerns and then putting together a creative offer to address them is something I learned from the @Brandon Turner book "The Book on Rental Property Investing".

Great buy and remodel. Good luck on the sale! 

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Congrats , it looks really nice !

Good luck on the sale . Do you plan to do more flips in the area ?

Great Job! Congrats on a nice profit. This is your first remodel?? Wow. Nicely done. You are very well put together and know the lingo. No winging it for you!

Your first flip looks like you have many years of experience.   It looks amazing.  Hope you get many offers!!!!!

Originally posted by @Joseph M. :

Congrats , it looks really nice !

Good luck on the sale . Do you plan to do more flips in the area ?

Thanks! I live in El Dorado County and love the area so I would like to pursue additional flips here. I've been reading up on out of state REI and am becoming more enamoured with the idea and at some point in the not too distant future I'd like to try an out of state project. Most likely a BRRRR.

It looks great! 

I am curious if you used a general contractor for the flip, or if you just coordinated the fixing yourself. I am looking at doing a flip in the near future and I am looking into having a company do it, or just do some of the work myself!

Thanks! Best of luck on the sale!

Nice job!

Congrats! Awesome job on it.

I learned a lot from your post, thanks!

@Robert Richardson Thanks! I did a lot of homework leading up to this by reading various REI & flipping forums on BP as well as reading no fewer than 10 REI books, a couple of them twice. Eventually it became time to put it into practice! :)

@Jacent Pillow    Thanks Jacent!  Nice to see a local here.  The home is a bit far out there in Swansboro so I've budgeted a longer listing period.  Homes seem to be moving out there, just a bit slower than the other side of the canyon closer to Placerville.  Do you invest in the area?

@Cameron K.   Thanks!  I did use a GC for ~90% of the flip and did a lot of the smaller stuff myself.  Although I know I would enjoy being more hands on my W2 job doesn't afford me much time to do so.

I stay away from there just because of the drive, I have to do two point turns in my long bed crew cab truck if I go Mosquito Rd. When the bridge goes in it will be a different story though. Prices will go through the roof I think! There are a lot of nice houses out there for descent prices now though.

where is it?  And how much??

Looks great Craig. 

That $70K - - - - you pay a sales commission and ordinary income tax out of that, right?

It looks stunning.

Do you mind sharing the interior paint color? I love that color so much.

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