Brandon & Josh were wrong AKA My first flip

Brandon & Josh were wrong AKA My first flip

Investor · Tampa, FL · Member since 2015 · 13 posts · 36 votes

Dear Brandon & Josh, 

I am happy to tell you that you were wrong! I have been listening to the BP podcast and hanging around here for almost a year now.  I was ready...oh so ready but those little words kept scaring me away "Most people lose money on their first flip". Well I am happy to tell you, I DIDN'T! (ok, we, but mostly I). I have been analyzing, advising and helping others with their real estate investments for a couple years now but I just finally jumped in and did my own end to end flip. YAYYYY.

I closed on the selling end of my first flip on Friday. It was an adorable little Old West Tampa bungalow. I (my llc and a partner) purchased it in September for 37k, spend 32k on rehab, 9k on closing costs/fees/commissions/taxes/holding costs. We purchased with cash and we sold it in February for 120k. Within 24 hours of the MLS listing we had two contracts. We accepted a full price offer with cash close and no contingencies. We had a backup offer for 124k. I know, I know, maybe I priced too low. After all was said in done, the deal made 42k before taxes.

We did it! I dreamed of this moment when I would be telling you all about it.  So as much as I cringed every time I heard "most people lose money on their first flip" I found so much inspiration in all the stories and the many times and ways you guys have said "take action" or "just do it."  

I should also note that I'm also a single mom, I work full time and volunteer for local animal rescues and charities.  After seeing all the feral cats and kittens in the area and my heart breaking worrying about them I also rescued, tamed and adopted out (to loving families) 7 kittens from 2 litters and trapped, spay/neutered and vaccinated 3 adult cats in the process. The neighbors were so happy to have help with them.  I'm sure it also helped the house to not have tons of feral cats everywhere.  

So if I can do it, anyone can do it!!

Oh, and I bought a rental, more on that next time. :) 

Union House (after photos)

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

Love your title of the thread! Congrats on your success.

For all reading this, I want to point out the most important factor in this message which resulted in the successful first flip: @Jessi Hill BOUGHT RIGHT!! Simple as that.

Look at those numbers - $32k purchase, $37k rehab, total of $69k and sold for $120k. That is a 57.5% deal and the reason she slammed a home run on this one. Deals with that kind of spread are not easy to come by but beginners need to know that they must find decent spreads before they pull the trigger.

See this reply in the discussion

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  • Sebastopol, CA · Member since 2016 · 50 posts · 14 votes
    10y

    Wow, your post is so inspiring! I am brand new here and just starting to explore real-estate investing. Congratulations!!

  • Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    10y

    Congratulations.keep it up

  • Real Estate Investor · Winston Salem, NC · Member since 2015 · 25 posts · 9 votes
    10y

    @Jessi Hill Impressive flip, but even more impressive kitty haul! 

  • Investor · Lake Worth, FL · Member since 2015 · 23 posts · 11 votes
    10y

    Congrats, It feels good.

  • Real Estate Agent · Lakewood Ranch, FL · Member since 2015 · 8 posts · 1 vote
    10y

    Nice job. We're still looking for our first flip deal. I've been helping others for years, and finally want to dive in myself.  

  • Investor · Riverwoods, IL · Member since 2015 · 27 posts · 13 votes
    10y

    You the man, er the LADY! 

    Congratulations so inspiring to see a first timer do the buy and flip.

  • John CasmonPro Member
    Cincinnati, OH · Member since 2013 · 1k+ posts · 1k+ votes
    10y

    That's awesome @Jessi Hill! Congratulations on your first flip!  When is the next one?!?

  • Smyrna, GA · Member since 2016 · 7 posts · 5 votes
    10y

    Awesome story!

  • Real Estate Investor · Egg Harbor Township, NJ · Member since 2015 · 45 posts · 71 votes
    10y

    @Jessi HillCongratulations!!! I can't wait to hear about your rental.

    James

  • Investor · Jacksonville, FL · Member since 2015 · 504 posts · 217 votes
    10y

    EXCELLENT! I love it when women do so well! Next!!!

  • Oakland, CA · Member since 2015 · 44 posts · 32 votes
    10y
    Originally posted by @Jessi Hill:

    Thanks guys!!! And I did take the kittens first. I'm always bringing home boxes of kittens from my RE prospecting.

    This wasn't a foreclosure. Actually it had been purchased as a foreclosure for 10k a year or so before I bought it. They had redone the electricity, hot water and AC. They made it livable (kinda) but it was still a disaster. We bought it for cash. We had to level the foundation, treat for termites, and add plumbing for a bathroom. Those were the largest expenses. We also finished a framed in wall, painted and opened up the spaces. Redid lotsa tile work and floors, painted the outside and added new appliances. I actually re-did the cabinets myself. They were nasty 90's greasy cabinets. I cleaned them, we painted them with fancy (on clearance) paint and then used a glaze for an antique look. Then we staggered them and added crown molding. Changed the whole look. Cost about $200 bucks and 3 weekends.

     Nice! Thanks for the details. Mind me asking where your experience with the minor remodels, such as the cabinet re-do, came from? It sounds like you found a great deal and you definitely are a strong woman. I hope to do the same soon, but really wish I had more experience with remodeling, so that I can put in the work myself!

  • Orlando, FL · Member since 2015 · 79 posts · 20 votes
    10y
    Awesome Jessi Hill Thanks for sharing.
  • Warner Robins, GA · Member since 2016 · 55 posts · 13 votes
    10y

    Excellent work @Jessi Hill

    I hope that I can find my first deal for flip soon.

  • Investor · Tampa, FL · Member since 2015 · 13 posts · 36 votes
    10y
    Raquel Pea I'm not crafty at all!! In fact I would never endeavor to redo cabinets for my own use! But when it saves a thousand off a rehab I'm all over it. I started by asking some crafty friends and then pinterested. I literally spent hours upon hours googling "bungalow color schemes" "diy cabinet makeovers" and the like. There are a ton of ways to save money on lower end flips like this one. We bought our counters from ikea. And we used laminate floor tile for the backsplash (after seeing more expensive versions of the same thing at HD). In a house in this price range we couldn't afford all the expensive upgrades so we picked stuff that looked great and reused what we could.
  • Oakland, CA · Member since 2015 · 44 posts · 32 votes
    10y
    Originally posted by @Jessi Hill:

    Raquel Pea I'm not crafty at all!! In fact I would never endeavor to redo cabinets for my own use! But when it saves a thousand off a rehab I'm all over it. I started by asking some crafty friends and then pinterested. I literally spent hours upon hours googling "bungalow color schemes" "diy cabinet makeovers" and the like. There are a ton of ways to save money on lower end flips like this one. We bought our counters from ikea. And we used laminate floor tile for the backsplash (after seeing more expensive versions of the same thing at HD). In a house in this price range we couldn't afford all the expensive upgrades so we picked stuff that looked great and reused what we could.

    That's super awesome! I always thought I could do the same, but seeing you do it is incredibly inspiring. The Internet is such an amazing tool, and I feel so many of us can save a ton while learning valuable skills through websites and tutorials. Thanks again for all the details, and keep it up Jessi! :)

  • Real Estate Broker · IL · Member since 2016 · 284 posts · 178 votes
    10y

    Congrats! I can't wait to get into flipping

  • NYC, NY · Member since 2016 · 617 posts · 456 votes
    10y

    Congratulations!!!  

  • Jared SawyerPro Member
    The Dalles, OR · Member since 2016 · 27 posts · 6 votes
    10y

    Congratulations!  That is a great story!

  • Fort Worth, TX · Member since 2015 · 4 posts · 1 vote
    10y

    Nicely done!!  Those words kept scaring me too.  But I am in the process of finishing my first ever fix-and-flip and we are set to close in two weeks.  

    Congratulations!  (And, my "hats off" to you.  I'm a real animal lover and it's great that you are doing what you are doing)

  • Tucson, AZ · Member since 2015 · 70 posts · 24 votes
    10y

    Congrats!  This is awesome...in the weightlifting world I like to call this gainsssss!!!  I wish I could see the after pics but im at work so ill have to check it out later.  Good job!

  • National City, CA · Member since 2016 · 18 posts · 6 votes
    10y

    Congratulations.  Keep it up and I wish you more success. 

  • Real Estate Agent · Saint Louis Park, MN · Member since 2015 · 213 posts · 82 votes
    10y

    Congrats! That is fantastic for the first flip! 

  • Investor · Saint Louis, MO · Member since 2016 · 2 posts · 1 vote
    10y

    So inspiring! Congratulations! Kittens and home are adorable!

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