My First Flip: Before & After

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Great job!!! Congratulations on your first flip... What motivation this bring to all of us newbie investors looking to jump in feet first with a fix & flip. Happy haunting for your next property.

Originally posted by @Rachel Gill :

Although this took way longer than expected due to contractor issues, I'm proud of the way it turned out and happy to report that it is under contract after on 3 days on the market!  It's a 3BR, 2 full bath row home in Baltimore, MD and we added an additional BR in the basement.  (See before & after pics below)

Breakdown is as follows:

Purchase Price $54K

Rehab $50K ($8K over budget)

Holding costs $8K

Under Contract $140K

Approx Profit $12K

Due to holding longer than expected(almost 6 months) and unbudgeted rehab costs the profit is less than I had hoped, but still not too shabby for a first timer.  I had a lot of help along the way from my Hard Money Lender and a Mentor and learned a lot of hard lessons, but I'm so glad I jumped in feet first and accomplished this.  I'm now on the hunt for my second and hopefully third flip.  

You had me at 'before and after'. I am such a house voyeur...lol. Anyway congrats to you Rachel - the place looks fabulous! Seems roomier afterwards. I'm always amazed at that transformation. Excellent work. Can't wait to see your next project. 

Kudos,

Mary  

it looks great. I'm trying to get into my first flip now and your pictures showed me that it can be done... How did you like the hard money lenders?? 

Congratulations! 

You learned a lot and made a profit, and $12k is a great profit on your first one you know why, because you made a profit on your first one! Many of the posts I've read, and stories I've heard, say that investors lose money on their first deal and some on their first couple of deals. You didn't! 

Much more success to you!

Nice job! The flooring looks awesome. The before and after pics are quite the contrast.  This is a great example of taking a run down property, improving it, making a profit, and bettering the community at the same time.

Originally posted by @Stacy E. :

Looks great!  Would you mind sharing your paint choices?  I like that greyish color that is used in many of the pictures.

 Thanks Stacy!  The wall color is the same throughout and it is SW Agreeable Gray color matched to Behr's paint + primer.  It seems to be one of the best grays that looks great in person and in pics.

Originally posted by @Chris Colvin :

it looks great. I'm trying to get into my first flip now and your pictures showed me that it can be done... How did you like the hard money lenders?? 

 Hi Chris, 

My hard money lender was great!  More like a mentor and guided me every step of the way.  Using hard money is the only way I'm able to invest in properties currently, so it works for me.  I hope to be able to use private money in the future, but I'm sure the hard money will continue to be a good option.

Rachel what a great project you should be proud. I'd like to talk with you further about your hard lender experience if you have time please let me know and I will private message you.

Jon trojan

Originally posted by @Lance Davies :

Congratulations! It looks great! May I ask how you found your mentor? Walking away with a profit on your first deal says a lot about the time you spent preparing! Great job!

 Hi Lance,

Thank you for your kind words!  As far as the mentor goes, I knew I didn't want to pay anyone to mentor me because I wanted a more authentic relationship with someone.  So to make a long story short, I was driving my daily commute home and saw a branded sign in front of a home that mentioned they were rehabbing the home to make it a better place an improve the community.  There was a phone number on the sign so I called it and I asked the guy on the other end if we could meet for coffee and talk about his journey into real estate and flipping homes.  He agreed and has been there to help me every step of the way  with nothing expected in return, however, I have done everything I can to help him in any way that I can as well.  I have asked him why he was so willing to help and share his secrets and he mentioned that he received so much help when he was getting started that he simply wanted to pay it forward and see someone else succeed.  My suggestion would be to attempt to find someone in your local area that you think you can connect with.  Being willing to add some value to the relationship.  For instance, as I was looking for my first property, I also sent him deals that I thought he might be interested in and tried to help in any way I could so that the relationship wasn't one sided.  Hope this helps!

Originally posted by @Guyoz Golan :

Now that's an A grade rehab @Rachel Gill. How long did it take you to close the current contract? Would you say the current price matched your expectations of the ARV?

 Hi Guyoz,

When I purchased the property the ARV I was basing the deal on was 145K, however, while holding the property the ARV dropped somewhat due to the current market conditions. We ended up listing for 139.9K, but got an offer over asking price, so it all worked out.

Originally posted by @Jonathan Trojan :

Rachel what a great project you should be proud. I'd like to talk with you further about your hard lender experience if you have time please let me know and I will private message you.

Jon trojan

 Hi Jon,

I'd be happy to chat with you about the HM experience.  Feel free to PM me.