Hi BP, this is my first flip. This is my second post on this project the first post was in the marketplace looking for a Hard money lender. I got some help and talked with a few lenders then I decided go for a 30 year conventional from and investor focused bank. The rehab money and down payment came from a HELOC on my primary residence.
I paid 325k for the house.
Closing costs, title costs, transfer tax, attorneys fees and six months school tax(5500)came out to 12,500 at the table. Depending on when I can sell I'll get back a prorated amount on the schools tax. My rental dwelling policy is 1600 a year, 900 for a buliders risk policy.
My budget for renovation work is 95k. I would like to be done in 90-110 days. We started a week ago and have filled two 30 yard dumpsters. I have a partner in the construction business and he is helping me with the project. I hired a demo company to get things moving they charged 2400, pricey but they sent out an experienced crew of young guys and we got most of our demo work done in 3 days. Now we're cleaning up and getting ready for framing. Here are a few photos:
I'll get back here when I can to post as we progress.
It's about 3 months now and the house is nearly finished. The plan, till we bought the house had been to gut the house and refinish. The second floor had 2 bedrooms no bathroom. A few weeks in the RE agent I work with, my partner and I decided we needed to dormer the house squeeze in 3 bedrooms and a full bath on the second floor. That change and a few structural issues caused the budget to increase to 175k.
We had been looking to sell in the 500-530 and now we're looking for 600.
About 2 months in I asked my partner to leave over financial problems. That has been a mess but I think I'll need to keep that to myself for legal reasons.
Next post hopefully I'll have some more detailed financials.
Progress looks great John, Nice work. I'll be interested to see how it all turns out. Hurts to hear about that increase in reno budget but probably a smart move to get the extra bedroom in. Good Luck!
Closed today sold for 612
Paid 325 for house
9k closing costs, including survey and inspection fees.
Reno was 190,000
Taxes and insurance whole held 6,700
Lawyers and architects 7,500
Interest on loan around 7 not sure till I see the payoff. We overestimated because the bank takes 72 hours to send.
lots of work for less than 40k but it was my first one and I had to sub out a lot of the work because we had a new baby in November.
Thinking I'll do more fix and rent after this more room for error and if I blow the budget. I tend to go a little overboard.
turned out beautiful. Very nice work. Sounds like a lot learned for the next one.
Great job @Account Closed and congrats on your first fix and flip! May I ask what is the number 1 thing you learned was?
Nice Work @Account Closed ! Congrats!
@John Geldert thanks to you as well. I found a great new employee through this flip and I realize I needed a project manager on site. I had been doing the day to day myself but it wasn't working out. I work full time and things kept going slightly wrong or not the way I planned. When confronted with a problem contractors left to thier own make decisions I would never allow. The change backs cost money. Once I hired a project manager things went much smoother. He's a talented carpenter so when not managing he was doing projects I had kept for myself.
I spent a bit too much on things like spray foam, solid doors, crown molding(nearly everywhere), hardwood flooring and converting house to gas. I plan on fixing my own rentals up in the near future. I realize in a flip I could have saved bit here and there, because the buyers didn't care so much, for some of the things I over spent on. They were looking for new kitchen and baths. All new plumbing, electric, boiler, and spray foam were not a selling point for most.
If only it was as good as that. My math was definitely off when I wrote up the post on #s. Def knew that a few weeks after but I also knew I was getting sued so I didn’t want to give too much info. Closed my account as soon as I realized it was going to court.
Profit was at least 10k less at that point. Hard to tell this far along. For one I had Hundred trips back to the house after closing. The sprinkler system ended up failing an inspection town made me jump though hoops....brought in engineer 2500 then I had to call in 2 or 3 Plumbers....then natural gas got hooked up. Had to change out all the burners on Hvac and a brand new water heater 2500 or so total.
One year repair guarantee on everything That cost a bit. Small stuff but def cost a few bucks
Got sued by Partner. Lawyers 60k Partner payoff 32k
So at the end lost a few bucks. Learned a lot tho
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