Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
Hey everyone I just wanted to share our first full house flip in the Grand Rapids, Michigan area. The before and after pictures are the exact photos used for the listing when we bought it and our picutres we used to list it. We lived in the flip so it took us about 6 months to finish and all for under $28K. This is just a few of the pictures as this was a large 4 bed 3 bath house. It was listed and sold within 20 days for just under asking price.
Real Estate Consultant · Brighton, MI · Member since 2013 · 607 posts · 251 votes
12y
Nice job, Jake! Removing the hanging cabinets in the kitchen does make a huge difference in the visual layout of the space opening it right up. Kitchen and bath cabinets look high end. Laundry room and basement looks great too. Could you tell us how much you spent on the purchase price & renovations versus your sell price?
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
12y
@Jake Thomas WOW! Great job Jake! What a difference that trim and shutters made to begin with. Added a pop of color and really draws your eye. I love what you did with the interior, that kitchen and bathroom look great, as does the color on the walls. I can't believe it sold for under asking, it's incredible to me that there are houses out there so cheap that look so good. Congrats! Next up?
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
12y
Just to clarify that was $28K in updates not selling or purchase price.
@Karen Margrave thanks for the positive feedback. All of the credit goes to my girlfriend for buying the house, picking out the colors, cabinets, flooring and everything else. We are still looking for our next project as houses are few and far between here in West Michigan.
Real Estate Consultant · Brighton, MI · Member since 2013 · 607 posts · 251 votes
12y
Nice job, Jake! Removing the hanging cabinets in the kitchen does make a huge difference in the visual layout of the space opening it right up. Kitchen and bath cabinets look high end. Laundry room and basement looks great too. Could you tell us how much you spent on the purchase price & renovations versus your sell price?
This house was purchased before I found this website and knew about the 70% ARV rule. Also our market is so low in inventory this was the only viable option we could find last year. I am excluding holding costs since we lived in this house but if I had to add them it would be about $7,500 (Taxes, interest etc.). You can't live for free :)
Here are the simple numbers.
Purchase Price $165,000
10% down at 3.5% intersest.
Renovations $28,000
Sell Price $249,000
Gross Profit $56,000
Realtor fees 3% ($7,470)
Closing costs ($7,000)
Net Profit before taxes $41,530
It was a great learning experience and cannot wait to do it again.
Real Estate Agent · Winter haven, FL · Member since 2011 · 572 posts · 336 votes
12y
No not bad at all. 70% is great but at the end the only thing that matters are the numbers. And it seems like you got in good and I am sure you have already learn where to cut cost during you next flip.
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
12y
@Account Closed We did everything except for finishing drywall.
Closing costs were mostly covered by the sellers and we had zero loan origination costs based on the type of loan our broker was able to get us.
The only other costs I can think off I may have excluded is the appraisal and it was $300.
As for the 3% commission our realtor knows we will be buying multiple houses in the near future from the MLS. Because of this she has agreed not take any fees for selling our houses. It also helps that she is my girlfriends mother.
@Account Closed We did everything except for finishing drywall.
Closing costs were mostly covered by the sellers and we had zero loan origination costs based on the type of loan our broker was able to get us.
The only other costs I can think off I may have excluded is the appraisal and it was $300.
As for the 3% commission our realtor knows we will be buying multiple houses in the near future from the MLS. Because of this she has agreed not take any fees for selling our houses. It also helps that she is my girlfriends mother.
Great job on the acquisition. I suspected one of you was an agent. Having one of your mothers be an agent is even better.
IMO, if your relationship survived a 6 month DIY live-in rehab, the two of you are now ready to conquer the world. Congrats!
North Ridgeville, OH · Member since 2014 · 17 posts · 7 votes
12y
The best part if the pictures...great composition and depth of field from the photographer. Never underestimate the power of good pictures to help really create an amazing feeling. Congrats on a kick-a$$ first flip!