My first flip

[Eric Mcginn]

I’m under contract on my first flip.
also, this is my first time acting as my own agent. I’m now a licensed California real estate agent and I can do transactions cheap! Side note, hit me up if you need a hand listing or buying! DRE# 02283361

So it’s a cute little house, only thing in town (Chico) for under $300k. But it needs the works. Floors have some saggy parts, same with roof. No hvac, appliances, not even a water heater lol. Plus all the cosmetics inside and out. 
it’s more of a project than I wanted, but it’s the only project in town I can afford. Anything else would be a 30+ minute commute to Oroville or Durham. And I have a 2 and 4 year old and do day care drop off so that would make it tough time wise.
So I’m going for this one. I’m basically going all in as far as cash goes. I do have some rentals I could leverage but prefer not to. 
Fo the Ease and speed I'm doing hard money. Financing costs will be about $12k all in over 6 months including interest. Maybe next time I'll line up a HELOC.

I’m an agent so I save commission on both sides. I’m doing all my own work, basically buying myself a full time job with flexible hours haha. 
Conservative Reno budget is $50k but I’m shooting for half that. 
Sales price will be $130k plus closing costs. 

But ARV is a wild card. The immediate neighbors are horders and involved with drugs. They burnt down their house and rebuilt a shanty shack.
I’m gonna do what I can to limit the visibility. Maybe offer to build some fences for them. 

If not for the neighbor it would be an easy $275k but I’m planing on $225k instead. Break even will be around $200k. I figure if everything goes terribly wrong, it will be a really good lesson and I’ll make my money back at least. 

[Marcus Auerbach]

Eric you are making a classic flip mistake that every contractor makes: you focus on repairing what's broken. The money is made with lifestyle upgrades and looks.

The things that make a house pretty and don't cost much. You are tackling all the things that cost money and absolutely invisible to the buyer! You are completely upside down in your thinking.

You have to fix the things to pass inspection, but the money is made with kitchens, bathrooms, flooring. By far the greatest ROI is paint. You will get zero money for fixing the crawlspace jack, even though you'll have to.

PS: day 1 put weed & feed on the lawn and set up sprinklers