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?

See this reply in the discussion

337 Replies

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  • Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
    11y

    Congrats @Alex Applebee, house looks great and a nice profit to go with it.  

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    11y

    Alex,

    Your story is an exact test image to what I and several others have been talking about here for years. Getting educated enough to know your numbers, know your market, and building your team is crucial, but after that, the only way you learn is from getting out there, making that offer, taking it diwn, and running your rehab. The mistakes you made are the most valuable education you can get and in this case, you got PAID for that education!

    Congrats on your first of many successes.

  • Investor · Sugar Land, TX · Member since 2012 · 554 posts · 232 votes
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    Great job @Alex Applebee!

  • Investor · Murphy, TX · Member since 2011 · 189 posts · 86 votes
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    Congrats @Alex Applebee. It speaks volumes that you were able to take on a project this large and complete it successfully at 26 years old with no prior experience. 

    I'm currently working a project similar in scope - I can relate to what you were saying about the mental and emotional roller coaster when you are in the middle of it. Congrats on winning that battle. I also appreciate what @Jay Hinrichs identified - always important to develop, recognize and utilize your competitive advantages.

  • Edgewood, MD · Member since 2014 · 283 posts · 59 votes
    11y

    @Alex Applebee Congratulations on your success. 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    11y

    @Bill Hinshaw

      absolutely and being a licensed broker is your going to engage in flipping retail I personally think is a must  it gives you flexibility to lower price to get something moved and you compensate that with your broker fee your not paying.

    And as HML in my day... I see HML fee's ruin profits ... on deals like these.. so to get your money lined up like she did was very smart as well... those two things gave her a huge advantage and took what would have been for most a break even deal and put 19k in her jeans... :)

  • Jon HuberPro Member
    Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
    11y

    @Alex Applebee Excellent work! Very impressive turn around

  • Dallas, TX · Member since 2014 · 57 posts · 15 votes
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    Congrats! it looks gorgeous, love how bright it is!

    Definitely motivating!!

  • Rental Property Investor · Homestead, FL · Member since 2015 · 6 posts · 5 votes
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    Congrats!!!

  • Investor · Newport News, VA · Member since 2014 · 43 posts · 20 votes
    11y

    IMPRESSIVE! Congratulations.

  • Investor · Allen, TX · Member since 2015 · 26 posts · 5 votes
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    Kudos to you Alex.. This is the main reason why I love BP.. Its really encouraging to see how people strive in spite of all the odds stacked up against them.. Nothing is impossible if you start thinking I M POSSIBLE.

    Thanks for taking the time to share your experience. Amazing job!!

    Kind Regards,

    Rajiv

  • Flipper/Rehabber · North, NJ · Member since 2014 · 91 posts · 23 votes
    11y

    Congratulations - the property looks great.

  • Investor · Atlanta, GA · Member since 2014 · 415 posts · 299 votes
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    Originally posted by @Jay Hinrichs:

    @Bill Hinshaw

      absolutely and being a licensed broker is your going to engage in flipping retail I personally think is a must  it gives you flexibility to lower price to get something moved and you compensate that with your broker fee your not paying.

    And as HML in my day... I see HML fee's ruin profits ... on deals like these.. so to get your money lined up like she did was very smart as well... those two things gave her a huge advantage and took what would have been for most a break even deal and put 19k in her jeans... :)

    One cannot overemphasize Jay's above comments. I have my realtor's license but haven't and won't do any retail work as a realtor. The $7,500 commission for selling my own rehab on a $250K deal can make the difference in a profit or a loss if a rehab runs into unforeseen expenses or otherwise goes sideways. Same with HML financing - some (most?) HMLs charge such exorbitant discount points that you can find yourself in a hole you can't dig out of towards the end of a rehab and some make the mistake of cutting their renovation budget thinking it will soften the blow, but that just digs the hole deeper.

    Good luck on your next one.

    db

  • Investor · Seattle, WA · Member since 2015 · 71 posts · 60 votes
    11y
    Wow amazing job. Congratulations
  • Entrepreneur · Saint Peters, MO · Member since 2015 · 16 posts · 4 votes
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    congrats I'm still trying to read up on how to get started too, but would like to start as soon as possible. I really need money to get out of the hole I am in and I have been wanting to do this for about 20 years, but just about a month ago, I decided, I will pursue my dream so I can be happy with a career for once. It's nice to hear stories like this of just starting up. Thanks for sharing. ;)

  • Fox Valley Area, WI · Member since 2015 · 5 posts · 1 vote
    11y

    Wow! This is so awesome. Amazing job!

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    11y

    $19,000 in profit is not bad at all. And I will tell you this secret, almost everyone goes over budget. This isn't just with regards to real estate, it's with regards to almost everything. That's just another reason not to stretch to get a deal.

  • Investor · Milton, DE · Member since 2015 · 65 posts · 14 votes
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    Great Job @Alex Applebee, thanks for sharing!

  • Houston, TX · Member since 2014 · 4 posts · 1 vote
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    Hi Alex,

    Congratulations! Truly an AWESOME job for a first.  Was funding a problem? How was this deal structured? How do you cope with living where you work, and safety measures?

  • Investor · Glastonbury, CT · Member since 2013 · 53 posts · 10 votes
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    @Alex Applebee, Awesome. Well done. 

  • Real Estate Agent · Phoenix, AZ · Member since 2015 · 47 posts · 4 votes
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    Awesome job Alex!  The property turned out amazing!

  • Real Estate Investor · Bismarck, MO · Member since 2014 · 45 posts · 8 votes
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    Really nice work, @Alex Applebee. 

  • Investor · Wailuku, HI · Member since 2015 · 18 posts · 6 votes
    11y

    Congratulations!  You did a wonderful job.  Keep up the fantastic work and keep us posted on your next great flip!  Have a wonderful day!

    Len

  • Investor · Laramie, WY · Member since 2015 · 7 posts · 0 votes
    11y

    Love the floors!  Nice job

  • Houston, TX · Member since 2015 · 3 posts · 0 votes
    11y

    Doesn't look like a first time flip to me ;)

    Awesome job and congrats!

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