1st Flip - Success story

10 Replies

Hello all,  my name is Bryan & this is a short post about my 1st flip success story (pending closing).

I decided just over 1 yr ago that I was going to become a real estate investor more actively. I had already been a passive investor on a few rentals for several years at that point. So I spent the next 6 months educating myself through reading, blogs, youtube videos, networking, reading forums on Biggerpockets & talking to other investors on Biggerpockets. So I decided to take the leap despite being Military and stationed overseas (my goals are to build a business enough while still being Active Duty military...this will allow me to enjoy retirement in 9 yrs). After a couple months of searching I found a few deals through the MLS that were decent with the financial #s even if they fell more into the $30k PIGS that some of you talk about (I disagree to a certain extent on the $30k homes being PIGS if you know what your doing and become selective on the deals you get involved in) & made some offers....after some back and forth on things I eventually settled on a home that needed rehab. I bought it for $15k, put $30-35k into it & rent it out for $800/mo (about $400/mo cashflow after tax, insur, PM, 10% vacancy & 10% repairs). I learned a few things while going through this process that I will keep in mind for future deals (much easier to get cosmetic repairs done with minimal surprises vs the bigger repairs due to being stationed overseas with the Military). At the same time I still had a good chunk of money available to invest in something else. I decided I wanted to get some experience with flips & partnered with some locals that I got to know over the last year. We formed a JV deal where I provided most of the money side & they provide the sweat equity. Obviously we made a few mistakes that cost us time & money, but the key was that we got into a deal that gave us the freedom to make some of those mistakes and grow without putting us upside down or in the hole. So here is some info on it...

We bought the property in Cincinnati, OH mid-Apr, rehabbed it, listed it & scheduled to close mid Nov.....all in expenses came to roughly $87k.

Sales price - closing costs/concessions - all in expenses = $20k profit split 50/50.  So I am happy to say that despite the complications along the way we were still able to pull close to $10k each from the deal despite taking 7 months to complete it all.  

Looking forward to the next deal & hoping to cut total time from purchase to sale from 7 months to 3 months.

Originally posted by @Bryan C. :

Hello all,  my name is Bryan & this is a short post about my 1st flip success story (pending closing).

I decided just over 1 yr ago that I was going to become a real estate investor more actively. I had already been a passive investor on a few rentals for several years at that point. So I spent the next 6 months educating myself through reading, blogs, youtube videos, networking, reading forums on Biggerpockets & talking to other investors on Biggerpockets. So I decided to take the leap despite being Military and stationed overseas (my goals are to build a business enough while still being Active Duty military...this will allow me to enjoy retirement in 9 yrs). After a couple months of searching I found a few deals through the MLS that were decent with the financial #s even if they fell more into the $30k PIGS that some of you talk about (I disagree to a certain extent on the $30k homes being PIGS if you know what your doing and become selective on the deals you get involved in) & made some offers....after some back and forth on things I eventually settled on a home that needed rehab. I bought it for $15k, put $30-35k into it & rent it out for $800/mo (about $400/mo cashflow after tax, insur, PM, 10% vacancy & 10% repairs). I learned a few things while going through this process that I will keep in mind for future deals (much easier to get cosmetic repairs done with minimal surprises vs the bigger repairs due to being stationed overseas with the Military). At the same time I still had a good chunk of money available to invest in something else. I decided I wanted to get some experience with flips & partnered with some locals that I got to know over the last year. We formed a JV deal where I provided most of the money side & they provide the sweat equity. Obviously we made a few mistakes that cost us time & money, but the key was that we got into a deal that gave us the freedom to make some of those mistakes and grow without putting us upside down or in the hole. So here is some info on it...

We bought the property in Cincinnati, OH mid-Apr, rehabbed it, listed it & scheduled to close mid Nov.....all in expenses came to roughly $87k.

Sales price - closing costs/concessions - all in expenses = $20k profit split 50/50.  So I am happy to say that despite the complications along the way we were still able to pull close to $10k each from the deal despite taking 7 months to complete it all.  

Looking forward to the next deal & hoping to cut total time from purchase to sale from 7 months to 3 months.

Congrats!

I, too, am currently abroad and I partnered with locals to buy a long term hold in an appreciating market. I wrote a post on how I found the market on my BP Blog. 

oops. Hit return to soon. ^^

Here's a link to my post:

https://www.biggerpockets.com/blogs/6526/blog_post...

Since I'm out here in Korea and there aren't many networks for investors in my shoes (or any^^) a few of us got together and started a meetup. We talk about how to invest from overseas, share resources and even have BP members join us virtually. We broadcast our Meetups LIVE. 

Anyways, if you're interested in connecting with other overseas investors, we have a closed FB group. I'm sure others would love to hear about your success. 

Feel free to reach out anytime ^^

Originally posted by @Bryan C. :

@Daniel Ryu, I might look into that more because any input helps...thanks for the info!

Cool.. we have other servicemen and women as well as military contractors as part of our group. 

Reach out anytime!

Way to go!  We bought a few units while stationed overseas, and it isn't for the faint-hearted.  I love how you figured out a way to problem-solve the distance and move forward on your investing!

Thanks all for the comments!  We closed on the property 1 month ago and ended up with a profit $12k each.  Not bad for 1st flip despite some hiccups.  Looking forward to #2...hoping to have that under contract within 2 weeks and sold within 3-4 months.