Real Estate Agent · Grand Rapids, MI · Member since 2017 · 59 posts · 138 votes
Hey everyone,
I just finished my first flip and profited over $30k! It feels good to know that I can be confident in my numbers and rehab estimates. I was only a couple grand off, which I feel pretty good about. Did most of the work myself, which helped my profit quite a bit. If you’re interested in the details, we documented the whole process on YouTube: https://youtu.be/dJ9KTHW78Hk
Anyone else pumped about a recent flip? I’d love to hear about it!
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
6y
Congrats on your success, not bad at all. As a suggestion, take all your hours spent on performing the rehab tasks and calculate what your hourly rate was from your profits. It may be beneficial for you next time to hire out tasks that are “below your pay grade” so you can focus on the higher paid tasks like finding deals, raising money, building your team, adding systems for efficiencies, etc.
Boston, MA · Member since 2017 · 209 posts · 126 votes
6y
@Will Barnard
Yes this is important. I had a lot of success in my first flip and did most of the work myself. Doing it with a contractor or even more helping hands cuts those profits quickly. But without contractors you won’t be able to scale.
Investor · Punta Gorda, FL · Member since 2010 · 151 posts · 128 votes
6y
@Will Barnard if The property was an investment property then I believe he could avoid capital gains by doing a 1031 exchange? If he lived in it then it would not be an investment property.
Real Estate Agent · Murfreesboro, TN · Member since 2019 · 194 posts · 181 votes
6y
@Jamie McCauley
Excellent! Not a bad profit. Even if it shook out to 8 dollars an hour (which i doubt) you got paid 8 bucks an hour to learn about the future of your business. That's smart.
@Will Barnard if The property was an investment property then I believe he could avoid capital gains by doing a 1031 exchange? If he lived in it then it would not be an investment property.
This deal was a “flip” per the title and description in the thread so flips are not eligible for 1031 exchanges as the “intent” was not to buy and hold it but buy and sell it. Even if that timeline took over 12 months, if the intent was to flip, no 1031 exchange. Of course som either factors can come into play as well but generally speaking, the answer is no.
Excellent! Not a bad profit. Even if it shook out to 8 dollars an hour (which i doubt) you got paid 8 bucks an hour to learn about the future of your business. That's smart.
This is another great example of what I was talking about. While it is important to realize that it is important to assign tasks out even if the cost of that task is increased, doing it all yourself or some of it is a great way to learn, even if it was $8 per hour. The education of that experience can be priceless.
Investor · Saint Helen, MI · Member since 2019 · 13 posts · 3 votes
6y
@Jamie McCauley
That is awesome! I just watched your YouTube journey and loved it, well done! Are you going to be attending the Michigan Landlord and Real Estate investor conference in Grand Rapids this February? I would love to connect!
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
6y
@Jamie McCauley Just had the chance to check out two of your videos. You and your wife should expect to hear from HGTV very soon, you both have a future in not just real estate, but film! Great job.
Flipper/Rehabber · Bakersfield, CA · Member since 2008 · 3k+ posts · 3k+ votes
6y
that is cool stuff!! In my 30 years of real estate investing and 100's of houses bought, I will always remember my first most vividly. keep pushing forward... don't wait to start hunting for your next deal.
It's not just ok, it's essential. You have to listen to what the market is telling you to do. No one can thrive by just making a plan and sticking to it regardless of what happens in the meantime.
Excellent! Not a bad profit. Even if it shook out to 8 dollars an hour (which i doubt) you got paid 8 bucks an hour to learn about the future of your business. That's smart.
Thanks Nick! It was definitely a learning experience!