Rental Property Investor · Denver, CO · Member since 2015 · 154 posts · 266 votes
Hey BP!
So this thread is for you to share your success!
I want to show the world ALL the amazing flips/rehabs our members here on BiggerPockets are doing and have done.
Here's what YOU'VE got to do -
Upload Before & After pictures of your projects, give a brief description of the property w/ location and (if possible) provide some basic numbers - Purchase price, Rehab, ARV, Net Profit.
These images may very possibly be shown on the BiggerPockets social media accounts (Facebook, Twitter, Instagram, Pinterest, etc...) So bring your BEST!
Lastly, make sure to Like our FB page and follow our other accounts @biggerpockets !!!
Denver, CO · Member since 2013 · 185 posts · 160 votes
10y
Id be happy to share my last deal. I bought a condo in a retirement community for a flip, and the purchase closing which I did with my own Real Estate license was closed on December 18th of 2016. After getting all of my plans approved through the HOA I started the demolition on the 27th of December. I used contractors through the whole process and it was the first flip I have done with out doing any of the actual physical labor myself. I did design and buy all of the finishes and delivered most of them to the job site, but for the first time it was a relatively hands off experience. There were a lot of problems, as there always are but I am really excited with the finished product. I finished the rehab on the 19th of February and I just listed the property on the MLS. This is also will be the first project that I have bought with my license, project managed, designed, funded, and sold by my myself from start to finish.
Investor · Los Angeles, CA · Member since 2016 · 72 posts · 55 votes
10y
Hi @Adam Phebus, thanks! I did A LOT, all new systems, windows, doors, roof, etc.
A few things I look for: hidden value, in this case it was adding on the sq footage, creating a really great master suite and also leveraging the views. Prior to purchasing the home had no deck and the home is perched on a hillside with really spectacular views. So adding the deck was very much a value-add. Prior to purchase the previous owners had turned the garage into an office....I switched it back to a garage.
Woodcliff Lake, NJ · Member since 2014 · 37 posts · 28 votes
10y
This post is slightly premature, but I'll go for it anyway. Our first flip is on the market (partnership with @Dave J.), and we had a great response at the open houses this weekend. We've got ourselves the old-fashioned bidding war we were trying to generate, with multiple offers already submitted. I'll update the post once we are under contract.
But here's what we know so far.
Let me emphasize that this was our very first flip. We knew going in that we had a TON to learn, but really wanted to learn by doing. We had been on the sidelines and talking about it for long enough. We expected to make mistakes, but hoped to be able to learn our lessons without losing money. At the outset, we established breaking even and learning as a win. Any profit was a bonus. We obviously ran the numbers and planned to make money, but we weren't going to consider it a failure if it didn't all go according to plan -- as long as we learned something. That may seem a silly mindset to some, but we truly valued the education we would get from the whole process.
Purchase: $82,500.
We bought the house from a wholesaler, who had it under contract from a bank (REO) at $72k. We later came to believe that we overpayed for the house, which was definitely lesson #1.
Rehab: $100k.
We really liked the numbers with our $80k rehab budget. We liked them a lot less with our $100k rehab reality. We didn't have a tight enough scope or timeline in place, so the price tag was an ever-moving target. A much firmer contract with our contractor is lesson #2.
List price: $225k.
This part has actually gone according to plan. Our ARV estimate ended up being on the low end of what realtors suggested once all was said and done. We opted to price it slightly under market in order to ensure a quick sale. Beyond that, we felt that we could generate multiple offers in the first week if we priced it competitively and marketed it aggressively, ultimately getting a higher selling price than if we tried to price the house more aggressively. As of this writing, it looks very much like the house will sell for above asking.
Profit: $10-20k.
This is obviously far below what we planned on, but as I said in the beginning, we consider it a pretty big win. We know so much more now that we did a few months ago, and we know that is going to help us do a much better job on the next flip and every flip that follows. Our break-even number is $215k when accounting for holding and closing costs. We'll see where we ultimately land, but we know we'll make a few bucks. The profit goes straight into marketing so we can build a pipeline of motivated sellers.
I didn't yet get to lesson #3, which is the market we bought in. We intentionally sought out a property in a low-end town for our area, since it gave us the opportunity to get into the market for just $82k. And we were right about the ARV for that neighborhood. The problem, though, is that our ARV put us at the very top of the market for that town. If we put more money into improvements (like new siding, for example), it wouldn't move the list price at all, since we were already the nicest house in the neighborhood without those extra improvements. Buying in a town just one tier up would have given us more flexibility to build in more profit.
A few pics:
Living room before:
Kitchen before:
Ceiling before:
Bathroom before (2nd-floor bathroom was used as a makeshift kitchen):
Main floor during (we opened up the floor plan completely):
Title Representative · Dallas, TX · Member since 2016 · 57 posts · 5 votes
10y
Thank Chris tell me; need know lot of the more is it wholesale house lot out these but I when to the bank they tell me my credit score are too low, I has too fragment, try something to do get my feet up and stand up go tell Bigger pockets help me out ! notice it no money to loan it the house exchange it . Also foreclose it lot out there ???
Woodcliff Lake, NJ · Member since 2014 · 37 posts · 28 votes
10y
Mini update on my post above.
We had great response at the open houses on the weekend (Saturday and Sunday both), and have received three written offers, all above asking. I can't comment on the details until we are officially under contract (or maybe closed -- I don't know if there are rules governing any discussion of the offers themselves), but it certainly appears we are going to do better than we thought!
Thanks @Theodore Freeman, @Garrett Chisolm, and @Imani Bell for the encouragement and feedback. @Dave J. and I are super excited to get a win under our belt on the first try. Mostly, we're excited that we took action!
Hyattsville, MD · Member since 2016 · 79 posts · 14 votes
10y
Everyone flips look AMAZING!!! I was wonder has anyone done a flip in the Baltimore, MD area? Would love to hear your story and she your before and after. I am interested in purchasing my first flip in that area. I am trying to a grasp of that market and great areas to flip. Or even hear what someone did to be successful at flipping it this area.
Hollywood, FL · Member since 2015 · 65 posts · 11 votes
10y
everyone has done a great job on their rehabs.. I will be starting one in June on my current duplex. I will be doing 2 bathrooms, 2 kitchens, and new floors in one unit, and impact Windows throuout the whole property
Investor · San Jose, CA · Member since 2015 · 76 posts · 64 votes
10y
Just finished my first flip! I acquired the property "creatively". It was a blend of joint venture and subject-to, which made for an interesting experience, but allowed me to get started with almost no money out of pocket. The Bay Area is crazy right now. Over 250 people came to the open house in ONE weekend, and we accepted an offer after 8 days on the market. Overall, the project was a huge success. The learning curve was steep, but I gained many valuable lessons along the way and can't wait to apply them to the next project. Thanks BP!
Lender · Elk Grove, CA · Member since 2016 · 190 posts · 94 votes
10y
Great job, @David Goossens! Nice to see someone complete their first flip in this market. Very inspiring! Can you elaborate on the subject-to portion of the deal?
Investor · San Jose, CA · Member since 2015 · 76 posts · 64 votes
10y
@Jake Knight- Thanks! Basically what I did was draw up a contract with the owner detailing the agreed upon selling price and the way in which the deal would be executed. I then used a Quit Claim Deed to put myself on title as tenants in common with the owner to secure a right to the property before the rehab started. This added an extra layer of paperwork and red tape when it came time to sell, but overall worked out great. However, my attorney helped structure this deal for me and advised me along the way to make sure everything was done correctly. I wouldn't do this without an attorney.
The project took about 14 weeks, from start to closing escrow.
Springfield, IL · Member since 2015 · 26 posts · 7 votes
10y
Not yet a success story, but seeing if anyone could help provide me with some advice for the interior of my first flip. Type and colors of floors, should I change the cabinets and trim, counter top? Here are some pics
Flipper/Rehabber · Tustin, CA · Member since 2015 · 433 posts · 103 votes
10y
Hello @Frank Nguyen. I'm not sure what's selling there, but I'd say paint the interior a light grey. Paint trim white. Paint the kitchen cabinets white for a clean look. Depending on your budget you can reface the cabinet doors too if you want. I think laminate flooring is good. There are some nice ones now that look like real wood. Good luck!