My first flip at 26, a woman, ZERO construction skills.

My first flip at 26, a woman, ZERO construction skills.

Investor · Versailles, KY · Member since 2013 · 82 posts · 167 votes

I closed escrow on the sale of my very first flip back in January. Craziness of life got in the way and I never got around to posting about it here. However, I figured it was time. I SERIOUSLY credit BP for some of the success here. I probably could not have made it happen without this site and J Scott's book. I have not been a very active poster (which I am trying to remedy!), however I have spent a lot of time on here reading and absorbing everything I could. 

The process of the deal and the steps to get there were a long one, starting at the end of 2013 getting my real estate license. I did this just so that I could get MLS access and the freedom to run my own comps and look at properties on my own schedule. Saving 6% is great too.

So my flip was financed through a private loan at 6%. I purchased a 1,580 sqft 2/1 fannie mae foreclosure, built in 1948 in Phoenix. I'm (or, was when this started) a 26 year old woman who knew nothing about construction. No pressure. I converted the house into a 3/2. Re-did basically everything except the roof. Including the framing of a master suite and bathroom in the existing footprint of the house. I sure jumped in with both feet, ha.

Did I make mistakes? YES. Did I overspend? PROBABLY. Was it perfect? NO. I would do so many things on this project differently the second time around. But I am SO glad I did it, and made it happen. You can read all you want, but you just don't know until you are in the middle of the process (wanting to cry, pull your hair out, sweating profusely because it is phoenix in the summertime and 116 degrees and what were you thinking flipping a house?!) that is when you learn what you are made of, toughen up, get creative, and get it done. Whatever you think you know about getting it done, you just don't know until you do it.

The toughest part was learning to manage subcontractors. I did not use a general contractor. I definitely got taken advantage of twice. This was expensive, and I was NOT happy about having to pay someone to rip out and fix crap work. However I needed to learn that lesson. Now my paperwork is tight and my tolerance for their BS is non existent. 

I purchased the property for $104,000. Sold the property for $210,000. Before you get too excited, my profit was only $19,000 after expenses, holding costs, closing costs, and getting ripped off by subs. HOWEVER this was my FIRST deal, and I did it all alone. Start to finish took me 6 months. So this project took longer than I thought, cost more than I thought, but I still made money, because I bought right. You really make your money upfront. Here are a few photos, and at some point maybe I'll come write a more detailed post of the highs and low of this experience and add some more pictures. Still, go out there and make it happen, if I can do it, you can do it. I did a second property in Scottsdale and now I've moved back to California and I hope I can get something big rolling.

Before: Don't be fooled by the "rock" exterior. It was plastic and cracked all over and hideous in person.

Nice A/C duct work there, though an open window. Pretty Fancy.

ok the couch looks hideous. It was all I had! I did just give it away, I wont stage with it again I promise, lol.

The former kitchen opened to a giant empty room in the back, that you accessed by walking into a large closet?? I sold the retro oven.

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Linda WeygantPro Member
Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
11y
Originally posted by @Mark Freeman:

@Alex Applebee   Nice first flip!! No help from hubby?

 What the ...???  Do you ask this question of the married men on the forum?

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  • Investor · Cleveland, OH · Member since 2012 · 145 posts · 39 votes
    11y

    @Alex Applebee

    Watch out Real Estate World...

    Good work I'm impressed for your first flip that's awesome.

    Congrads

  • Investor · Belleville, MI · Member since 2015 · 131 posts · 40 votes
    11y

    Wow!  That is quite the first project!  Congratulations!

  • Investor · Scottsdale, AZ · Member since 2011 · 509 posts · 134 votes
    11y

    Stellar!!

    Whats in the pipeline for the next project?

  • Investor/Accountant/Builder · Meno, OK · Member since 2014 · 1k+ posts · 918 votes
    11y

    very nice. Congrats.

  • Investor · Atlanta, GA · Member since 2014 · 415 posts · 299 votes
    11y

    @Alex Applebee Congrats!  Great job Alex! 

  • London, Greater London · Member since 2015 · 108 posts · 13 votes
    11y

    @Alex Applebee

    Alex congratulations for a superb job on your first real estate venture. As a newbie, it gives me the confidence that somehow I will get that first deal too hopefully a little less stressful .

  • Torrance, CA · Member since 2015 · 54 posts · 8 votes
    11y

    Wow congrats on the awesome job!

  • Wheaton, IL · Member since 2015 · 42 posts · 21 votes
    11y

    Congrats - the 'after' property looks great!

  • Real Estate Investor · Clovis, CA · Member since 2014 · 195 posts · 194 votes
    11y

    @Alex Applebee   Nice first flip!! No help from hubby?

  • Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    11y
    Great job. There is a lot to be said for just doing it. Having the guts to pull the trigger and doing your first deal puts you ahead of most.
  • Wholesaler · Triangle, VA · Member since 2008 · 40 posts · 2 votes
    11y

    Nice job @Alex Applebee! Valuable lessons like this will certainly lead to bigger paydays and a prosperous investing career. Certainly not only about the money you make/lose when just starting out, but the lessons therein will payoff tremendously. Thanks for sharing and here's to your next deal! 

    Cliff B.

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    11y

    Nice job.  What's next?

  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    11y
    Originally posted by @Mark Freeman:

    @Alex Applebee   Nice first flip!! No help from hubby?

     What the ...???  Do you ask this question of the married men on the forum?

  • Chicago, IL · Member since 2014 · 710 posts · 200 votes
    11y

    nice work.  I like how you went from a 2/1 to a 3/2.  A 2/1 house is functionally obsolete.  Luckily you had the sq footage to make it work.  

  • Investor · Versailles, KY · Member since 2013 · 82 posts · 167 votes
    11y
    Originally posted by @Mark Freeman:

    @Alex Applebee   Nice first flip!! No help from hubby?

     He was working full time, and we we love eachother but don't work well together, lol. He did help out the day I needed the truck and thought picking up 26 bags of quickrete and dropping them off at the house ourselves wouldn't be difficult. never again.

  • Kissimmee, FL · Member since 2015 · 18 posts · 1 vote
    11y

    very well done you did a lot of nice finishes can't wait to get mine under way

  • Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
    11y

    Did you replace windows?

    Those curtains really help make the place look taller and more elegant....while you obviously did a lot right, for some reason that stands out to me.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    11y

    @Alex Applebee

    awesome job! Any wannabe can be a success by doing! You still made a profit, got an education, and didn't let fear stand in your way.

  • Mcdonough, GA · Member since 2015 · 22 posts · 2 votes
    11y

    That is very encouraging! I am currently reading up a lot and hope to start my first flip in a about a month. Your results were amazing! Great job!

  • Investor · Versailles, KY · Member since 2013 · 82 posts · 167 votes
    11y
    Originally posted by @John D.:

    Did you replace windows?

    Those curtains really help make the place look taller and more elegant....while you obviously did a lot right, for some reason that stands out to me.

     Thank you. I did replace the windows (twice, thanks to terrible subs). The curtains are $3/panel ones from walmart. Cheap way to dress up a property. 

  • Investor · Atlanta, GA · Member since 2015 · 31 posts · 1 vote
    11y
    Congrats on your first flip and thanks for sharing! Very encouraging!
  • Real Estate Broker · Boca Raton, FL · Member since 2014 · 98 posts · 23 votes
    11y

    Nice job@Alex Applebee!.... very impressive, Did you knock out external walls to add your extra bed and bath or did you just re-work the existing footprint?

  • Investor · Versailles, KY · Member since 2013 · 82 posts · 167 votes
    11y
    Originally posted by @Fausto Carosella:

    Nice job@Alex Applebee!.... very impressive, Did you knock out external walls to add your extra bed and bath or did you just re-work the existing footprint?

     I re-worked the existing footprint. The back had an old addition that was basically a giant room that made no sense. I turned the space into a breakfast nook, master bedroom and master bathroom. 

  • Investor · Murfreesboro, TN. · Member since 2014 · 23 posts · 7 votes
    11y
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Alex Applebee

      nice work 10% profit on gross is pretty standard..

    couple of take aways for others... there are two key things you did to make that profit

    one you got a RE license so you could list it yourself.. I assume another broker brought the buyer.. so you saved2.5 to 3% of gross right here 5to 6k that others who are not licensed would have to pay..

    You also got sweetheart money.. not many people can get 6% money on the first flip most will need HML which would have cost them at least 10k or more..

    So your profit was made through not only doing the rehab but taking the time and effort to get licensed and your access to under market rate for capital..

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