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

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  • Investor · Marina Del Rey, CA · Member since 2015 · 297 posts · 87 votes
    11y

    @Alex Applebee very cool! I love the small touches that made it your own like the stained glass window. Other than the prices being more affordable what made you choose Phoenix over something local? Will you continue to work in AZ or do a project in CA? 

  • Real Estate Investor · Clovis, CA · Member since 2014 · 195 posts · 194 votes
    11y
    Originally posted by @Dell Schlabach:

    @Nicholas Moffet

    Linda has two words in her entire dissertation about gender, (even women). Everything else if referring to first timer abilities along with her own example, and you go on a diatribe about gender bias. 

    A bit of jealousy that the women did better then you on there first rehab?

    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?

    Dell, you might reconsider.  Linda called me out on a gender issue on the first page of this thread.  I think she has something going on there.  Can you say a chip on the shoulder?

  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    11y

    I don't know that I have a chip on my shoulder, but I absolutely believe that when people are being racist or sexist - even if it was not intentional - that it needs to be called out.  Pointing it out is the first step to making it go away, in my opinion.

    Would you care to answer the question?  Have you or would you ask that same question of a married man?  If you would, that's awesome.  I mean, I think couples that work on projects together would probably get a lot out of it.

    But so far, I've not seen one single person ask a married man here if their wife helped them on their rehab project.

  • Real Estate Investor · Clovis, CA · Member since 2014 · 195 posts · 194 votes
    11y
    Originally posted by @Linda Weygant:

    I don't know that I have a chip on my shoulder, but I absolutely believe that when people are being racist or sexist - even if it was not intentional - that it needs to be called out.  Pointing it out is the first step to making it go away, in my opinion.

     Going around calling everyone racist or sexist is more about you than them.  If these things are constantly on your mind, you are the one who has a problem with it.  I believe that most people have good intentions and don't think I have ever called anyone racist or sexist and congratulate the OP for taking the high road, in this thread, on these issues as well.

  • los angeles, CA · Member since 2015 · 9 posts · 0 votes
    11y

    I'm sorry, why do you point out that you are a woman? Is it supposed to be harder for us? Because we are stupid?

  • Investor · Gilbert, AZ · Member since 2014 · 19 posts · 1 vote
    11y

    @Alex Applebee

    Excellent work on the flip and this thread!  I'd be happy to read your next post as flipping ain't easy, or I should say flipping quality ain't easy.  I have seen too many home depot scratch and dent flips that make me smack my head, but they still can make money.  I'd be very interested in knowing your contact for the pavers.  Also, any other good contractors and bad ones; always good to add to the Rolodex and the do not call list!  The key is definitely having good quality people you can trust to do work at a fair price.  

    Finally, I think T Swift said it best; "And the haters gonna hate, hate, hate, hate, hate"

  • Investor · Baltimore, MD · Member since 2014 · 78 posts · 48 votes
    11y

    So impressed @Alex Applebee!  You did such a great job on this home.  Much continued success!

  • Philadelphia, PA · Member since 2015 · 19 posts · 2 votes
    11y

    @Alex Applebee     Congrats on getting the job done and coming out on top. I am a newbie and love hearing success stories of others.
    Were you working full time during the 6 months of rehab on the property or was this your FT job?

    Do you want to flip something similar again, but just do it better and more profitable at it, or will you venture into something a bit larger?

    Mike

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

    @Alex Applebee     Congrats on getting the job done and coming out on top. I am a newbie and love hearing success stories of others.
    Were you working full time during the 6 months of rehab on the property or was this your FT job?

    Do you want to flip something similar again, but just do it better and more profitable at it, or will you venture into something a bit larger?

    Mike

     The rehab was my full time job. I have completed the renovation on a second flip, it is currently in escrow. When it is complete I will post pictures and numbers. Not quite the success of this one, but I still made money. I went into a higher end neighborhood, but should have stuck to the area where my first flip was. I will post about it down the road. 

    I have moved back to CA since then and will find a flip here soon.

  • Investor · Tampa, FL · Member since 2015 · 89 posts · 19 votes
    11y
    Originally posted by @Alex Applebee:
    you dont need a partner or a mentor when you have cash sweetheart.

    I never asked for a partner or a mentor.  You really need to stop being rude to people.  Im right, shes wrong, thats the facts.  Sry about your luck 
  • Investor · Versailles, KY · Member since 2013 · 82 posts · 167 votes
    11y
    Originally posted by @Carrie Giordano:

    @Alex Applebee very cool! I love the small touches that made it your own like the stained glass window. Other than the prices being more affordable what made you choose Phoenix over something local? Will you continue to work in AZ or do a project in CA? 

     At the time I was living in hell...pardon me, Phoenix due to some family obligations on my husband's side. I lived there for four years and had learned the market. Also it was agreed with my family member/investor I should get my feet wet out there and prove myself before jumping into CA projects and their higher price tag. 

  • Real Estate Broker · Portland, OR · Member since 2014 · 8 posts · 4 votes
    11y

    Way to go and hang on!! Im working on putting my first one together very soon. Important to have a good team on board. 

  • Memphis, TN · Member since 2015 · 3 posts · 1 vote
    11y

    Congratulations !!!

    The finished product shows your focus and commitment.

  • Syracuse, NY · Member since 2015 · 100 posts · 87 votes
    11y

    Beautiful. Very encouraging :) can't wait to see your next, and one day, mine 

  • New York City, NY · Member since 2015 · 6 posts · 1 vote
    11y

    I love it great flip I can't wait to do my first one 

  • Real Estate Investor · Newark, CA · Member since 2015 · 7 posts · 1 vote
    11y
    Originally posted by @Alex Applebee:

     The rehab was my full time job. I have completed the renovation on a second flip, it is currently in escrow. When it is complete I will post pictures and numbers. Not quite the success of this one, but I still made money. I went into a higher end neighborhood, but should have stuck to the area where my first flip was. I will post about it down the road. 

    I have moved back to CA since then and will find a flip here soon.

     Congratulations on your first flip! It definitely takes a lot of courage to take that first step with flipping but I'm sure it'll get easier from there. (My wife and I are awaiting the bank's approval before we get started on our first project here in CA.) Regardless of where you got your funding...the point is you got funded or if you were the one that lifted a paint brush....the point is you dealt and managed the contractors, you were involved in every aspect as far as I'm concerned. 

    Looking forward to reading more success stories!

  • Investor · Los Angeles, CA · Member since 2015 · 2 posts · 6 votes
    11y

    Great story! Congratulations and continued success. 

  • Residential Real Estate Agent · Jacksonville, FL · Member since 2014 · 22 posts · 6 votes
    11y

    Amazing job!!!! Keep it up!!

  • Arlington Heights, IL · Member since 2015 · 1 post · 0 votes
    11y

    Way to go Alex! I would say a huge success- learned lots and a ROI!

  • Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes
    11y
    Originally posted by @Emily T.:

    I'm sorry, why do you point out that you are a woman? Is it supposed to be harder for us? Because we are stupid?

     Emily, I think you need to rethink your suppositions.  My mother did her Master's Thesis on "Why men enter the Nursing Field."  This was back in the 1970's when few men entered the Nursing Field.  Was she being a "sexist" for researching this subject?  Not at all, it was just a field with 95%+ females (3.9% males in 1970) and males were rare in the field.  Today, males nurses make up almost 10% of the Nurse population.

    When a woman plays in the NFL or MLS or NBA or NHL for the first time, it will be HUGE news! When a woman becomes the President of the United States, it will be HUGE news.

    Women can do ANYTHING a man can do, but societal morals and mores have prevented woman from some fields.  And women are breaking down those barriers, DAILY.  MORE power to them!

    @Alex Applebee, a huge CONGRATULATIONS on your First Flip.  And also, HUGE respect for your composure to those "negative posters" on this thread.

    Another huge congratulations for having the courage to DEMO bad work and replace it with quality work.  Most flippers would just cover it up and move on.  We had a custom home built and didn't catch the builder putting plain drywall in the shower, behind the tile, and a short five years later, we had to tear out the entire shower and install the proper backer board.  Luckily, we threatened the builder and his insurance company paid for the repair, which came to almost $15,000.00.  We HATED using the original builder, but unfortunately, the developer had sold the lot we wanted to this idiot builder because the developer needed the funds.  But that is another story.

    A couple of hints that might help in the future.  And maybe you did this, but I always get several referrals BEFORE contracting with any construction work.  I have contacts for everything from a clogged toilet up to installing a new roof and rewiring an entire house.  All of my contacts come from active Realtors, active General Contractors, active Flippers and active Property Managers.  You stated you have your RE License so I was wondering if you are working for a Broker?  If so, be sure to find out which Realtors are busy in the Flipping and Building arena, they can be great resources.

    The two main PILLARS to successful Flipping is to BUY RIGHT and to CONTRACT RIGHT.  And Contracting Right doesn't always mean the CHEAPEST price.  If you pay a little too much, you only lose a little, but if you pay a little too little, you lose EVERYTHING, because then you have to tear it out and redo it.  For example, if a job should cost $18,000.00 and you get two bids, one for $15,000 and one for $20,000, many times, the $20,000 bid will be cheaper because it will be done right and on time, where the $15,000 job could cost another $10,000 just to fix it and be much longer in finishing.

    Finally, did you ever consider filing a Small Claims action against the poor sub?  Were they state licensed?  If so, you can file with the state against them.  Did you put an online review of their work?  I am just curious if you pursued any recourse against them?

    So, GREAT Job Alex!  And have fun in Santa Barbara, it is a little more expensive there than Phoenix.  But, with the higher price can come higher profits!

  • Investor · Orange, NJ · Member since 2015 · 25 posts · 8 votes
    11y

    Great job! Looks like a pro did it! Wait!, maybe you are a pro. CONGRATS! Would love to hear about the second flip in Scottsdale! 

  • Investor · New York City, NY · Member since 2015 · 4 posts · 1 vote
    11y

    that's how it's done!!! thanks for sharing and congrats

  • Contractor · Miami, FL · Member since 2015 · 113 posts · 11 votes
    11y

    @Alex Applebee

    Cool!! contgrats. the first one is always the hardest, then it gets easier. good to see there are other crazy young people investing. i was 29 when i got started. 

  • Flipper/Rehabber · Wheeling, IL · Member since 2015 · 9 posts · 1 vote
    11y

    Congratulations On your first flip Alex.

    Next time hire a home inspector for a walk - through, (befor you buy)

    they will give you a general idea about rehab.  

    Greg

    GN Property

    Illinois

  • Real Estate Agent · Groveport, OH · Member since 2015 · 1 post · 0 votes
    11y

    Great job! I love what you did with the kitchen! 

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