First Flip is done, 39K profit!

15 Replies

I sold my first flip yesterday and am very pleased with the results. Big thank you to the BP community, the dozens of podcasts I've listened to, and JScott for writing his book on flipping houses!

I bought it April 23, finished it August 11 and got it under contract the first day it went on the MLS. I spent quite a few long weekends working on it, but most of the work was done by contractors and handymen. I found this house by putting a post on a facebook "social site" and had motivated seller contact me. She and her two brothers inherited a house from their dad but didn't have the $$ to actually put the house in their name. There were also two years of back taxes they couldn't pay. They are all drug addicts and the house was a complete dump. I paid for the attorney's fees and they sold me the house. It took a couple months to get that all lined up since one of the brothers is in prison but it worked out in the end.

Here's the rough numbers:

Purchase price including back taxes and attorneys fees      31k  

Rehab                                                                                             85k

Interest on line of credit and credit card                                   3k

Agent commission and closing costs                                        12k

Sales price                                                                                    170K

Before and after videos:

https://www.youtube.com/watch?v=WDi2KOlazog

https://www.youtube.com/watch?v=5gKfvANk6aQ

Congratulations...That's a pretty sweet ROI!

Boy that before video was brutal!!! I'm not going to lie though as soon as I saw the bomb shelter I would have been sold. Excellent job on the finished product!

Congrats, Nolan! What an inspiring story. Those videos are epic....really well done on the project.

Do you mind sharing what you posted on FB that got the response from the sellers? That's a great strategy and just wondering how you worded the post. Any other bites on the post?

Thanks and best of luck on your continued journey. Looking forward to following your successes!

@Christina J. My post was nothing fancy, something like: If anyone needs to sell their house fast for cash send me a message. I only got one response, it took about 3 months to finish all the negotiation and paperwork but it worked out well.

congrats , that is cool you were able to get a deal off a Facebook group . Nice profit . 

Did the people you bought it from make any money or was it all just to pay off the taxes and attorneys . Really crazy and sad that people would allow a house to get in that condition , drug addiction is a terrible thing . 

The after video looks really nice I am sure the neighbors were happy you fixed up the house . 

@Joseph M. Thanks, all tree siblings walked away with 9k each, unfortunately I don’t think they did anything constructive with it. I paid the back taxes and attorney which came out to around 4K. This deal seems like it was a home run, Not sure I can repeat it for the next one. It’s okay though, I learned some good lessons and I feel like I have some momentum and confidence that was lacking before.

@Nolan M. Good story for your first flip, and good profit. Just would like to know do you pay all the rehab and purchase for cash? It took some of the time doing your rehab, so the finance choice will impact your profit.

Thanks.

Would you mind listing what you did to the place? What all did you have to replace? Roof, etc?

@Corey Rieman I did some of the work myself. I helped clean it out initially  and did the demolition in both showers, I also tiled both showers, I installed the counter tops, toilets, vanities, and lots of other misc tasks. I used to do tile full time and I've done quite a bit of remodeling in the homes I've lived in so I was comfortable doing those things. This was my first flip so I was on top of everything, very hands on, getting to know the contractors and handymen I used. Next one will be more hands off. 

@Brook Rieman This house needed everything! I spend about 4K on dumpsters and paid laborers about 3K to clean it out. We put in a new AC unit, breaker box, roof, tore out rotted wood on the roof of the back addition, new insulation in the back room, new windows all around, all new doors, new siding, collapsed the septic tank and added a sewer line to the street, moved walls and opened walls inside, tore out the rock driveway and poured a concrete driveway, new fencing front and back, we also replaced some of the old steel plumbing with pex. 

I had some headaches, I had issues with incompetent painters and texture guys but it all worked out in the end. All in all I was very pleased  with the outcome, it was nice to walk through when we were done, and the payday was great!

I'm just curious, how close were you when you did your initial estimate or repairs and how much of these things came up along the way? Regardless, you still made out really well. Incompetent contractors are the WORST. 

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