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.
Makes sense. I've worked in & around the contractor industry & that's true across the world I'm sure. There are so many unreliable people out there who really only want to work when they are down to their last dime. I think I've decided that I'm going to go do contracts between me & my contractors because I've had issues with stuff not getting done in a timely manner & having to hound my guy to go back & fix something like it's supposed to be. I've read that some people will withhold the final 10% or so until all work is completed. I thought that through & I think I'll do the final 10% so long as it's under $1000. How do you handle that?
Investor · Maui, HI · Member since 2016 · 65 posts · 54 votes
10y
Here are all my recent crowd funding investments. Having more bravery than brains I put 2m into 20 deals... and will track their performance here in a shared google spreadsheet. Ideas for adding performance metrics are welcome.
Tega Cay, SC · Member since 2014 · 213 posts · 74 votes
10y
Here is one we did recently:
3bed 1 bath 980 sqft SF home
Purchased 23K from owner
Private money borrowed 30K
closing cost and mis fees and back taxes 1.5K roughly
Rehab 5.5K and 1K of my own - 6.5K total rehab - because i was over budget :-(
all in for 30K borrowed and 1K of my own money. ARV of property 70K.
Rents for 821 a month. 800 is the rent and they pay the 21 to us for renters ins.
Refinanced the property after 6 months and paid back private money and got 30 yr fixed and payment of 550 PITI with a mtg of 54K. Was able to take the cash out from refi and buy another duplex and we are currently renovating the property.
Only 1K out of my pocket due to fix up costs . Small numbers, but they add up.
I sold a flip last Friday. It was a doozy! I bought it in April of 2014 and yes it did not sell until February of 2016 and no it was not rented. Had huge problems with contractors and I didn't get started working on it for months because I had too many flips going.
Bought it for $75,000
Repairs were about $70,000
Carrying costs about $5,700
Financing costs about $7,000
Selling costs about $8,000
Commission saved -$2,200 (since I am an agent and got paid a commission when buying)
Great job!!! I'm so impressed by your resilience from having to deal with crappy contractors but still selling and making profit after nearly two years.
This was my 4th flip. We negotiated on the price to buy for $186000. Did all the work in house with my family who is all carpenters. The 3 of us worked 5 weeks 16 hour days and the finished project turned out amazing! Here is the link with before and after pics. She lasted 2 days on the market before having a full price offer. We are still filling out the paper work but a purchase of $186,000. Rehab cost of 17,000. With a gross profit of $57,000!
For all you flippers in the Kansas City area and Denver area I do custom terrazzo countertops. Mention bigger pockets and we an give a discount off the total project.
My first flip was when I was in my late 20s. I purchased it for 222K on a short sale, held it for 1 year doing all the newbie mistakes you can think off. It was a complete gut out, but at the end I couldn't believe I made profit. I ended up selling it for 336K a year later.
I'm on my 2nd flip now and currently negotiating a pocket listing sale. Fingers cross I get this. I'm planning to do a blog every step of the way here or on my blogging site:
Congratulations on your first flip!!! What mistakes did you make?
this was a hoarder house that took us way longer than we wanted because we have college rentals turning over and also finishing another flip . i think we were about 10 months , part of the reason was i found a gold coin the first 2 days going through stuff ,and wanted to look at everything , that was pretty much the only valuable in the place :( did find some cool historic things from war , but not much value . we paid about $150k , we put in about $70K ( including trash removal, taxes, holding costs ) and sold for $293k .
This by far is the BEST before and after I have seen thus far. The before was scary lol. Great job!!
With my "trusted" carpenters I sometimes give half up front or as the work progresses pay in increments. I don't mind paying in increments, say in 1/3 incrementally .
With my licensed guys, they require no money from me upfront, only when the job is done.
Just wanted to share the good news with my BP Family. You all told me to Jump, and I said how high!
I took the leap away from analysis paralysis last week as I have been eye balling an REO during Fannie Mae's First Look. let me tell you.... Those 15 days were the longest day's of my life haha. When it hit the MLS, I was the second offer in, however my MPP allowed me to offer asking price. The first offer turned out to be a low ball offer and I just found out today that my offer has been ACCEPTED!
Here our my Layout:
Actual Purchase Price: 93,900 ~4,000 less. I know we can sell it for 194,000.00 but we will go a little above comps. Fixed/Holding Costs around 26,340/@6 Months Rehab Costs: 40,000 Leaving a profit of 30,000 for our first flip
If we stay firm on our Rehab costs, and we sell higher than comps (Perfect world) We may make close to $40,000 or $50,000. Wish us luck!
Our last question for you is.... What's next? Does anyone have a process laid out on the steps after the offer has been accepted? J Scott has a process list from his first book that I have outlined, but want to hear if any others have amended to that list and or found something that is easier?
Looking forward to everyone's responses! Happy Flipping!
Congratulations on taking the leap!!! I will be taking mine soon!!
What is MPP? And what is included in the fixed/holding cost?
It's amazing what you learn on the first one. We made some money on it, not as much as I'm sure a seasoned flipper would have, but for our first one, I'm calling it a win!
Congratulations on your first... It's beautiful!! I read that Denver, CO is one of the top markets for investing. Are you near Denver?
My first success story was a house in Longmont that I flipped last year. It was a fairly rundown house on a road crowded with cars and along a train track. The neighborhood wasn't great, but the market was (and still is) desperate for new homes. Here are the numbers:
- Purchase price: $150,000
- Expected Rehab costs: $20,000
- Expected ARV: $210,000
- Expected Profit: $15,000
It was my first flip, and I didn't expect to make a lot, but I needed to get the experience and was fairly confident I would make some money.
Here are a few before pictures:
And here are some after photos:
And the final numbers:
Rehab costs: $31,000
Sales price: $231,000
Profit: $24,000
All and all, I was happy with the result, though I know I got lucky on appreciation. I learned that I need to work on estimating rehab costs better and control costs during the project, and also learned a ton about the start to finish process. I got the education I was looking for, for sure.
Paul
Great job!! Your profit and sale price turned out to be more than you anticipated. Winner in my book!
In terms of newbie was the biggest mistake was not making a decisive decision to flip or rent. Making that decision early on would have changed approach to renovations and how long I held the property and the just the entire mindset of an investor was not there on my first investment.
At the end I was very fortunate to have flipped it to make +$40K on it.
The biggest learning was just that. When you purhcase a home, be very clear, flip or rent. That way the strategy of renovations change.
1. Example, if i had decided early on to rent, I would not have converted attic space into a room. It was built out enough to be used as a room but "finishing" it would not yield more rent money. The kitchen I chose was too expensive for a rental.
2. But because I chose to finish the attic to a room, chose nice kitchen, re-positioned layout of home, I ended up making the home unique on the block. I held the home for 1 year. YES 1 YEAR as a newbie spells disaster. But what I got lucky was the price I got it on was dirt cheap. I did the renovations myself which saved a lot while maintaining my full time engineering job.
3. Another job i did that was not needed for a flip or would be a problem for rental was a French Drain. For a flip i would not have wasted my money on that. But for rental I would as it ensures no water damage on your property and reduces risk of incurring maintenance cost.
This gives me a great idea, I should add this to my list of blogs I will write,
"My first flip mistakes"
Many people can learn from this! Connect with me so that when I post it here on BP you'll get first notification.
thanks! It was our first so lots to learn. Our biggest learning was to pick in the right neighborhood however that goes for anywhere. We had a plan to complete the flip in 3-4 months, get it fully leased and we were able to do just that. Reno's cost more then expected but we had a large buffer so it was sustainable. And yes, all laminate flooring, aside from bathrooms and front entrances - we put a higher end waterproof flooring. Also, we put cyramic tile in the comnnon coin laundry room.
Wichita, KS · Member since 2014 · 7 posts · 2 votes
10y
I wanted to share my first deal. Purchased a 3 bed/2 ba 1600 sqft house in Wichita, KS. Took down wall paper in kitchen & one bathroom, painted and added new stainless steel appliances. Changed light fixtures, re-carpeted two bedrooms, and did a deep clean. Purchase + Upgrades put me in at $73K. I had it for 6 days, fixed it up, and rented it out at $1,150 on a one year lease. They've been in the house for almost a week now and they're already asking if they could change to a two year lease. I advertised $1,050 for a two year and $1,150 for a one year. So far, this has been a great deal. Some $ figures below:
Cap Rate: 11.5%
CF/Investment: 33%
I learned quite a bit, this being my first deal. I was expecting "finding the deal" to be the hardest part, however I spent over 40 hours at the house cleaning, fixing it up, etc. which was much harder than I thought it would be. I was on a first name basis with the Home Depot cashiers by the end of the week. I also learned it's amazing what a little paint and deep cleaning can do to a property.
My goal was to have three houses by the end of the year, scheduling to purchase #2 in July/August, however I am already looking because this one went so well. While I bought this property for cash flow, not focusing on appreciation, it appraised at $10K over my all in price, so that was the cherry on top.
Any fellow Wichita investors - I'm really interested in south Wichita. I know it can be hit and miss and it's the only side of Wichita that I'm not familiar with, so any tips/areas to stay clear of would be greatly appreciated.
Developer · San Diego, CA · Member since 2016 · 329 posts · 56 votes
10y
Here is the project
San Diego CA
PP: $235K
Repairs: $42K
Sales Price: $350K
Profit (After Soft Costs): $52K
Craftsman cottage that required LOTS of work. Overall good project but had a hidden sewer issue which did some damage to the budget. Great deal all around and all the scene of a networking event from this website! Cheers