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.
Real Estate Investor · Rancho Santa Fe , CA · Member since 2016 · 323 posts · 107 votes
10y
Hi i bought a Tape of properties from the bank and i am happy to say today i close escrow on last one what a good feeling the tape had total of 13 properties in Southern California, 5 in San Diego were i live even one in my little town of Solana Beach, so step
1) Getting them out, Cash for keys or litigation i preferred cash for keys everyday
2) the estimate and finding the right contractor i was lucky enough to have 2 contractors working on my 8 properties at the same time some in Orange and in SD, estimate i come from a developer family and been in this for a while so i got good and knowing the cost.
3) the right real estate agent well i didn't put all my eggs in the same basket i went and got 2 killer guys in San Diego, and myself i have a license also so between us with 0 dollars into marketing just with right pricing and todays market the properties sold in average of 11 days. it was awesome
4) i also do consulting for first time investors and private equity companies, and banks so i was busy if your going to buy bulk focus 100% cause 2 jobs is crazy.
When I saw the before pictures, I was thinking, "Oh man, I hope she found someone to take that awesome stove." But you kept it in the condo, which is even better, and definitely not what I was expecting, lol.
I own a business where people in the construction trade often frequent, however turns out most of them don't hold the best credibilty. I first tried to use inexpensive labor to cut costs and maximize profit. Most of the craftsmanship was OK however even though I was saving money I was wore down with the lack of stability. These guys showed up when they wanted, wanted pay advances (which I promise to never do again...well I can't say never, I'm too nice). After all the stress all the multiple guys gave me, I finally hired a guy I knew who did great work, a little higher priced but dependable. After hiring him, my eyes opened up. Not only did he introduce me to another solid guy in the trade but that guy had a father who was a carpenter/painter (retired). My end results are near perfect.
My crew came together by letting go of all the people that screwed me. Now I get work done faster, better & virtually stress free. My labor costs have gone up quite a bit but if that's the price to pay to avoid headaches, amen!
Real Estate Professional · Escondido, CA · Member since 2015 · 5 posts · 0 votes
10y
Happy to share my first rehab and hold property.
I purchased the property through a short sale for $230k 2 bed 2 bath 912sq/ft condo in Mira Mesa, San Diego I only worked on it on the weekends and had to remodel the entire unit (2 baths and a kitchen) it took 4 months of 2-3 days a week I paid cash so my only holding costs were $300 month hoa payment so $1500 the total rehab cost including property tax was $19600 after all the dust cleared I am into the property $250k the property value is 300k I pulled 225k out with a mortgage payment of $1650 which covered tax hoa and insurance and am renting it out for 1850 so for the $25000 that I put into it plus my sweat equity I am cash flowing $2400 my first year of owning.
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
10y
@Nick Carter not to burst you bubble but rent - (mortgage plus escrow) does not equal cash flow. You have no vacancy rate, maintenance, or cap expense. Read up on cap expenses. I have no experience on cap expense for a condo but on small single family home in San Diego I use $300 month. WAG for condo is $100/month. If I use my WAG cap expense + 5% vacancy + 5% maintenance you actually have small negative cash flow. On the positive you built equity, property is likely to appreciate, and you have learned a lot and will continue the learning process.
So I think you did fine but it is very unlikely to be cash flowing for a while.
Prior to watching the video I was curious why the rehab was so high. Then I saw the gutted house, and heard about the contractor problems. I am a newbie investor looking into fix and flips and this was an excellent resource. Thank you for posting it.
Investor · Bryan, TX · Member since 2016 · 11 posts · 3 votes
10y
The last deal I did was an unconventional flip with low risk in Thornton, Texas. Bought and sold within a week.
Purchase Price: $18,000
Rehab Cost: $0.00
Closing Cost on Purchase: $500
The wholesaler that sold me the deal already found the owner finance buyer, vetted them and set up closing between me and the soon to be buyer.
Owner Finance sales price: $34,500
Closing Cost on Purchase: $0.00 (Owner Finance Buyer paid all closing costs plus initial escrow for taxes and insurance.
Financing Terms: 10% interest, 15 years fixed
Monthly Mortgage Payment From New Owner: $370.94
Because I no longer own the house, I do not have to worry about PITI nor maintenance and management expenses! I could possible sell the note for ~75% of the value, but I think I will keep the cashflow!
Prior to watching the video I was curious why the rehab was so high. Then I saw the gutted house, and heard about the contractor problems. I am a newbie investor looking into fix and flips and this was an excellent resource. Thank you for posting it.
Real Estate Agent · naperville, IL · Member since 2014 · 193 posts · 53 votes
10y
@Atul Mohlajee...that makes sense...I also have my all rentals around the area I live in but now I started thinking being more open to other areas (and may be out of state) for better opportunities and better cash flow...
I recently walked through my local home depot and could not believe the difference in price between engineered hardwood and actual hardwood. They unfortunately did not have an installed display to showcase the difference in look and feel between the too.
In your experience is there a big difference? Would a typical first time home buyer be able to tell a noticeable difference?
Actually I have seen eng'd hardwood more expensive in some cases in my main market (Florida). The reason being is that eng'd is more adaptable to fluctuations in moisture content, and does not tend to warp as bad, therefore is in higher demand. Real hardwood is rarely laid directly onto concrete, and needs a subfloor to prevent moisture being drawn into it. Given that most FL homes are slab homes, and has an extremely high humidity, eng'd is the best route to take.
As far as looks are concerned, the top veneer of eng'd is real hardwood, only the composition of the underlay is fabricated therefore is not much of a difference in look once it's laid. The noticable difference though is that it has more of a manufactured look since there aren't as many inherent flaws as there is with real hardwood.
Having said all that, the property I posted is actually in a suburb of Cleveland, lol.
Investor · Newark, DE · Member since 2015 · 248 posts · 178 votes
10y
This partial success is related to the Note side of things.
In Sept I purchased three NPN 2nd position notes. After closing the purchase and having them boarded with the servicer I started the process of borrower contact. The first contact was the RESPA letter, when we received no response, we went with a door knock to verify that someone lived there and to let them know we own the debt. Third step was the legal process of foreclosure.
The borrower made contact and wants to keep the property. Sometimes hitting them with legal gets them to come forward. Hopefully we can workout an agreement to get them back on track. I will keep you updated as things progress.