Just finished my first flip! $30k profit!

144 Replies

Congrats! I am a newbie and Flipping will be my first strategy to build up my real estate business. Thanks for the post... it gives me encouragement seeing your success.

@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.

@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.

Originally posted by @Deb S. :

@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.

Originally posted by @Nick Gann :

@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.

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. 

@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.

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. 

Originally posted by @Jamie McCauley :
Originally posted by @CJ M.:

@Jamie McCauley

Thanks!  I think changing your plan is ok, I've sold rentals before if they have appreciated a lot. 

That's what I call an "accidental flip": rehabbing a house to rent and then noticing it's appreciated too much to keep. 

 

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