First Flip Turns a 150,000 Profit!
Whats going on guys my name is Brandon Henderson and I completed my first flip in the norther Denver metro area for a 150K profit... and I purchased the house when I was at the ripe age of nineteen. I hesitated before writing this post, however I wanted to get my story out in the hope that at least one person would find it interesting.
I moved out of my parents safety blanket when I was 18 and started my freshman year of college living in an apartment with my best friend from high school. Time flew by and before I knew it our lease was about to end. I knew I wanted to purchase a house, however my job waiting tables at a local Cracker Barrel wasn't exactly enough to impress underwriters. Through some trial and error I was able to persuade an agent into showing me properties for sale. My efforts did not go unnoticed and to my surprise I was able to find a private party lender to back my investment.
I closed on my property and quickly realized I was in way over my head... The property needed a complete basement gut, egress windows, electrical rewire, new A/C & furnace along with a kitchen remodel. No big deal I thought (while working a full time job and attending college), I can do this on my own and have this done in three months max. Thankfully I have an amazing family an awesome group of friends that jumped right in helped me without hesitation. I worked day and night going without sleep while maintaining an unhealthy consumption of energy drinks. Still, with all the efforts of my close circle, we were only able to get the basement remodel done in a four week timespan and the free labor I was soaking up dried out.
Once I realized how much money and time it was going to take to completed the lengthy list of to-do's that piled up, I decided it was time to switch strategies and turn this into a house hack. I was able obtain a traditional loan with a $1,200 mortgage payment, while I rented out the three rooms I had available for a total of $1,450. I used the extra money I had to complete the renovations and this quick flip turned into a 4 year learning experience.
Once renovated the property was turned into a 4 bed 2 bath ranch property with 1,800 sq. ft., on .42 of an acre. The property was purchased for $162,000, there was $30,000 in renovations, and sold for $345,000 grossing over $150,000. I am now weeks away from committing to real estate full time, and taking my knowledge to the Tampa Florida area.
Thank you for all the posts, podcasts and blogs. It has tremendously helped my progress.