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I did a post about my first rental purchase here ( which took place last month. During the time of acquiring the rental property I also came across an opportunity to purchase a property in my hometown. I really wanted to make this a BRRRR property but it would not have worked due to numbers. This thread will follow my journey. I will try to update as much as possible. Enjoy!


I started a side handyman business several years ago to bring home extra income and have my wife stay home with the kids. One of my customers asked me to meet her at another home to give a bid on stopping some water leaks. When I walked into the house I could not believe what I saw! It was a disaster! The entire kitchen floor was bubbled up due to water getting into the particle board.. No one lived in the place and unfortunately she had allowed some homeless folks to set up camp in the back yard. My gears started turning immediately that this house could be BRRRR or flipped.

I began to ask questions about the place and its story and her plan with the place. I learned that it belonged to her husband and 5 other heirs through a trust. No one had lived in the place for several years but was still full of everything her inlaws had owned. Homeless folks were using it for cooking and bathing. Place smelled wonderful J. She let me know they planned on selling it and were talking to a realtor about placing it on the market. I let her know right then I would be interested in purchasing it and would like to entertain owner finance if they were up for it. I assumed since they were heirs that there was not a mortgage on the place at this point.


Since this would be my first flip and learning from the podcasts that most people loose money on their first flip I decided to reach out to a local investor. I wanted to make sure I made something on this deal. I asked if they would be interested in partnering in this deal if it were to materialize. They would help guide me through the process in exchange for part of the profit. They agreed and walked the property with me to give a ballpark rehab number of around 40K. Using this number I learned that trying to use the BRRRR method and pull my money out would not pencil out. Local rent to price ratios are too large, I would have had to keep substantial amount in the deal after Refi for rent to cover mortgage payments. So that was out the door.


I learned from my customer that her brother in law was the trustee of the trust. She had talked to him and they indeed were willing to do owner finance. SCORE!! I would use my HELOC from my personal residence to fund the rehab. ARV is 245,000. The Terms were:

Purchase price: 155,000

Down payment: 5,000

Interest rate: 4% (interest only)

Loan to be paid in full within 1 year

No prepayment penalty

Purchased as is

I was stoked!! Creative financing on my first flip! We opened escrow and were on our merry way. UNTIL, I received a phone call from Title Company stating that the trustee did not have the power to make a loan with this trust. There was no language on the trust that allowed business to be carried out in the trusts name and so title would not issue title insurance for the property. DANG!! I would have to get signatures from all 6 heirs stating that they were ok financing the loan to proceed. I talked to owners about this, they were on board but unfortunately one of the heirs had been MIA for several years and no one knew where he was at. Last they heard he was living on the streets or on a farm somewhere. After two months of asking questions and looking around we finally found him. His family members tracked him down and I got a notarized signature. THANK GOD! Couple weeks later we closed escrow and the place was ours!


Home is located in a C or C+ neighborhood. With the low price point we planned to do as little rehab as possible. Job scope included:

Haul off all trash on the place

New kitchen

New bathroom

Laminate floor in kitchen/dining room

New carpet in bedrooms

Complete interior paint

Complete exterior paint

New vinyl windows

Clean up shady electrical work


Being handy myself I thought about doing as much of the work myself to save money. However I also know time is money and the market is slowing down here. I want to get this thing on the marked ASAP. I work full time and run a handyman business on the side so my time is limited to Sundays. I decided to let go of the reins and let the contractor do what he does best.

I hired two friends and within 2 days time 90 percent demo was complete and the house was pretty much cleared out. I hauled three 16’x8’ trailer loads to the dump to start with. By the time its all said and done I will have 10 trailer loads of garbage between inside demo and cleaning up the homeless camp outside. I enjoy doing clean up jobs, beats sitting behind a desk for 8 hours a day and I am a neat freak. Just watch out for those drug needles!



We started rehab on the 18th and within a week’s time electrical, plumbing and drywall was complete. Currently moving onto texture and painting of interior as well as door frames and doors. When we ripped up the carpet we found original hardwood floor in most of the house. Plan is to salvage this floor instead of placing laminate on top. Goal is to have this house on the market no later than May 1st! I took floor down to the subfloor in bathroom, kitchen, and dining room. 

Going back together!

I am now focusing on the yard clean up. A lot of trash was hauled in by the homeless folks. Also a lot of wood from tree in the yard. Plan on bringing in our tractor to clean house. 

BTW this is a 3 bed 1 bath home with a dining room and additional family room. Home also has an enclosed patio area. If this home were somewhere else in town I would highly consider adding a second bath but not worth it here. 

My wife and I will be heading to some kind of store that gets overflow and donations directly from Lowes and HD all the time. These are not damaged items, they are brand new. Hoping to pick up tile for the bathroom as well light fixtures, ceiling fans, vanity and if were lucky flooring. 

@Scott Scheel , thanks for support! Its been a lot of physical work so far but I love physical work being raised a farm kid. My goal with RE to to allow me back into the Ag world without having to rely on ag to support my family. I want to raise my kids out in the country like was raised. I believe there is no better life! :)

@Anthony Soliveras-torres , thanks for the support and motivation! I know my posts are long but as a newbie I want to know the details of how something came together. That being said I want this thread to be a place new folks can reference on how a flip project came together and show the steps.

So far order of operation has been:




Trim painting

@Kevin Moules This is great Kevin! I'm very excited for you, and thank you for sharing your experiences. I am also a newbie getting finances together awaiting the opportune moment to jump on my first deal. Educating and learning to a certain degree is a must before starting IMO and this is such great insight. I can't wait to see how you make out. Keep up the good work!

P.S. country side living sounds pretty awesome!

@Brian Schmidt , thanks for the support. I totally agree with you on the education. Some of the podcasts guests say they have never read a real estate book. That's fine they had a mentor. Some of us do not have the opportunity and so reading is our mentor. Good luck with your first deal!

@Johann Harshman , it was a pain but the hard money cost was something I wanted to avoid if I could. I lucked out that the sellers did not need all the cash up front.

@Drew Solidum and @Andy Bailey thank you. 

Spent the day today with my wife shopping for light fixtures, door hardware, tile for the bathroom and other random items.

Cabinets/doors/door frames and trim are officially painted. Next up will be interior painting before moving on to counter tops and floor install. 

Continued Progress :) Wish I could say I have done all the work myself but must give credit to the contractor and his brother who are doing all the work. Guys have been in the business for 40 years. Place is cleaning up nice!

Spent the day pressure washing entire exterior of the house in preparation for contractor to being addressing dry rot issues as well as prepare for new paint. While I was there decided to pressure wash concrete walkway along house and half of the driveway. Amazing what high pressure water can do! I love seeing all that old algae come off. I am a clean/neat freak so its very satisfying for me. Its one of the jobs I really enjoy doing in my handyman business. 

Interior painting is complete! Used a color that my partner has been using in her flips. Its a very light grey. 

Spend the day after lunch cleaning the back yard yet again. This time hauling all the scrap metal they had there, enough to pretty much fill a 16' trailer.  One last load of tree trimmings, a good mowing and some roundup and the back yard will be complete. Finally!

Current Expense total: $24,700

I will add pictures later on :) 

@Scott Scheel thank you! I would estimate that interior will be complete in the next 3 weeks. Flooring should be going in next week. I am currently working on hanging fixtures in the house.  

Technically i am always looking but just MLS. I have never done direct marketing or mailers since me RE goal has always been rentals. This just happened to come across my radar.

That being said I am now thinking if I could do just 2 flips a year and make 15-20k each that would supplement my handyman business income well and could pay the bills. I really would like to BRRRR but very hard to do so here without leaving a lot of money in the deal. I am hoping to explore the idea of further partnership opportunities with the investor who is partnering with us on this deal. Wholesaling has also crossed my mind as there is a need in this area for one.

@Scott Scheel, how do you folks get your deals? Wholesalers, direct mail? If mail, letters or post cards? What works best for you?

Sorry folks no recent pictures. been getting to property too late to take any good ones but will be back this weekend. 

nice progress!

as far as hauling stuff off, craigslist "free" section does wonders. my primary had a ton (metric, literally) of junk that was taken by some good folks off CL. 

How did you/your contractors prep the kitchen cabinets before spraying? Did you sand them at all?

@Kevin Moules congrats on getting into the game! I'm in the Bay Area, probably two hours away from you. Flipping can be very exciting, I wish you the best of luck!

@Victor S. , I did not think about using CL, I think that's a great tip! I thought about doing something like that for the scrap metal but i just didn't want people in this place that no one is living in. Just kind of weary especially being a first project. 

Regarding the cabinets I do not think they sanded them as they come pretty smooth from HD. I can ask and then post here. 

Are you saying my name is a good combo? Whys that? :) and yes its for reals.

@Sean Pan , thanks! Its amazing to see the place transform! I know right where your at in Milpitas. Looked at your page, looks like you have a podcast and are doing well. Awesome!

Spent 8 hours on Sunday installing baseboard in all the rooms that have the hardwood floor before they put down the last coat of polyurethane. First time I have done baseboards. Started in the closets to gain practice and mess up in less conspicuous places :) Another 8 hours should allow me to finish baseboards and caulk everything up.

This weeks goal is to hang ceiling fans and clean out garage which is a mess. 

What the front currently looks like. Time for new garage door and paint!

Nothing like farmer grade Roundup :)

Going over this weekend to finish up yard clean up and finishing baseboards. Exterior has been painted! Ill post pics as soon as I can. 

def. interested in how it looks painted. throw in some mulch/river rock in the front to give it that nice curb appeal! what is that huge tree on the left side, btw?

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