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.
Congratulations! I hope this post doesn't come off as negative, but I've seen this happen a few times and there's a few red flags that popped up in your post.
$150k sounds terrific on the surface, but it took you 4 years to get there. That's less than $40k per year. Do you think you made that money because you bought the house right or because the market has appreciated $150k in the last 4 years? The point I'm trying to make is, could you come to a new market and find a good enough deal to flip in a few months, as opposed to 4 years? If you're planning on meeting a realtor to bring you a good deal, I'd come up with a new strategy.
It sounds like you had help from friends and family in Denver. Unless you have more friends and family in Tampa, there's going to be a higher bill for labor.
I don't want to sound like a hater, but many times people fall into a first flip, whether their grandma dies, or their neighbor sells to them cheap. And then they quit their job to flip houses, only to never find another deal.
Ok perfect, I just hate to see people that have no plan, it's a recipe for disaster. As long as you can get off market deals you will be fine. Best of luck to you!
Great story and congrats! Would love to see before/after pictures if you have them :)
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing