First Flip done succesfully
Hello BP
2 weeks ago we closed our first flip. I’ve been reading bp for over a year now and always enjoyed reading success stories. So decided to share ours.
We purchased 1bd condo in Fairfax VA. We used hard money. 10% and 3.5 origination points. Closed in 7 days.
Purchase price $127k
Downpayment $31,750
Closing cost $5k
Reno $13,500
Holding cost $6500
Asking price 185k, after 1 month lowered to 182k. Sales price $179k
Closing and comission $8,800
Net profit $13,500.
We found the deal off market. Previous owner was a heavy smoker and left behind all furniture and personal staff(that was part of the deal). So first three-four days was a lot of cleaning. We hired guys to take out the garbage. Than a lot of patching and fixing wall cracks and primering the walls. I bought oil based primer, which helped to eliminate strong smoke odor. Than we started with bathroom. It was gutted and all new tiles, bath tub, toilet bowl installed. Also we decided not to replace kitchen cabinets and just paint them white and replace formica counters with quartz and install backsplash. It turned out pretty well. Of course we made mistake: The property had an original windows but we decided just to clean and paint them. That was a big mistake, because I spent a lot of time on removing old paint, sanding and painting. It still didn’t turn out well. So on next project we decided to replace windows without even bothering to do make over.
We have done some work by ourselves, like painting and patching the walls. For bathroom and flooring we hired contractors. It took us 1 month and 3 weeks to renovate. Honestly we didn’t know where to start and what order we should follow. Luckily I have one friend who is reno business and he gave me an idea what should be done first and what to leave last. I think if I woudn’t mess with windows I could’ve save one week or so.
After we listed:
1 st contract came after 2 weeks on market. It fell tru because buyer couldn’t get finance. We lost 1 month.
2 nd contract fell tru after inspection and we coulnd find agreement on repairs. We accepted price of $174k and the buyer wanted another $2k. Because they wanted new windows and HVAC tune up.
3 rd contract went trough. Buyer requested to fix few issues based on inspection and few touches like add one more row of tiles in bathroom, replace couple minor things. Which cost me only 200-300 dollars and majority of it I was able to do by myself.
So from purchase day till closing day it took us 6 month. We learned a lot. Now looking for new project. Good luck bp fellows.