First Flip Completed

6 Replies

Investment Info:

Single-family residence fix & flip investment in Snohomish.

Purchase price: $256,000
Cash invested: $1,000
Sale price: $390,000

This was a hoarder house that I purchased direct from seller.

How did you find this deal and how did you negotiate it?

I found this deal from a direct mail campaign. I targeted non owner occupied with equity. I negotiated direct with the seller.

How did you finance this deal?

I used private money to fund the down payment and rehab and hard money for the purchase of the home.

How did you add value to the deal?

Complete remodel to an inhabitable house

What was the outcome?

Net Profit $15,000

Lessons learned? Challenges?

Always get a home inspection before purchasing a project. From the outside, the roof of this property looked fine. Multiple GC's also told me the roof is probably good. (it most definitely was not) When the buyer got their home inspection it turned out the roof was actively leaking AND the furnace was shot and dangerous. If I would have got a home inspection done before hand I would have learned about these issues, and could have negotiated the purchase price lower with the seller.

Congratulations. This is a great first flip and there is no doubt you have more success stories on the way. Keep it up and keep us updated. 

Good Luck!

@Will Morris looks beautiful! Great job. I’m curious. How long did it take you from the point of realizing you wanted to get in to flipping to finally making your first purchase and then from there how long it took for repairs and finally sell the house?

I’m asking because I am currently working toward my first flip. I haven’t found the right property yet.

@Dennis J OLeary Jr I’ve been wanting to “start” flipping for at least 10 years before. I didn’t start actually taking action until about 3 months prior to purchasing this property. I found BiggerPockets and starting listening to the podcasts and that is what helped me find my way into actually taking action!

@Dennis J OLeary Jr it took my about 4 months from purchase to complete the rehab. That being said I spent the first 2 months trying to find a GC and do things myself. Once I found a good GC the project was done in 6 weeks.

I also listed this project at a very bad time in the middle of winter. Next time I will try to plan it out so it goes up for sale in the spring.

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