Share Your Success! Pics, Flips, and $$$
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 !!!
Can't wait to see all these rehabs!
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.
Below are some numbers on the project and photos.
Condo 2 beds, 2 Baths, 1200sqft.
Purchase Price = $153k $158k- $5k (waived commission)= $158k
REHAB = $28K
HOLDING COST = $3K
LISTING PRICE = $232,900
BUYER COMMISSION/CLOSING COST= $10K
PROJECTED PROFIT = $38,900
BEFORE PICS
I did a flip where I only owned the house for 9 days. I did nothing to the house, I didn't clean it, I didn't paint it, I didn't remove anything from the house, I didn't add anything to the house, I didn't cut the grass and I didn't even turn on the utilities.
Sold it for $10,000 more than I paid. Started looking for a buyer before I settled and after under contract, and had the sale contract inked before I settled. The reason it took 9 days was waiting for the buyer to fund and settle.
The buyer rehabbed it, and sold it for $60,000 more than he paid. So in 2 months this house sold 3 times, when I bought, when the rehabber bought and when the rehabber sold.
On another flip, I did clean and paint. I paid $6,500 for the house and before I could advertise or list the property, a friend of a neighbor approached me and asked what I was going to do with the house. I said sell. He said that he was interested and we settled on $140,000. There was no sign on the property, no advertising, no listing, and was sold to the first person who looked at it.
My latest can be seen here.
http://www.biggerpockets.com/forums/522/topics/279042-my-first-six-figure-flip-hopefully-with-before-and-afters
Wow!! That's an awesome job!
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?
@Shanel Wiggings
I did a flip where I only owned the house for 9 days. I did nothing to the house, I didn't clean it, I didn't paint it, I didn't remove anything from the house, I didn't add anything to the house, I didn't cut the grass and I didn't even turn on the utilities.
Sold it for $10,000 more than I paid. Started looking for a buyer before I settled and after under contract, and had the sale contract inked before I settled. The reason it took 9 days was waiting for the buyer to fund and settle.
The buyer rehabbed it, and sold it for $60,000 more than he paid. So in 2 months this house sold 3 times, when I bought, when the rehabber bought and when the rehabber sold.
On another flip, I did clean and paint. I paid $6,500 for the house and before I could advertise or list the property, a friend of a neighbor approached me and asked what I was going to do with the house. I said sell. He said that he was interested and we settled on $140,000. There was no sign on the property, no advertising, no listing, and was sold to the first person who looked at it.
Thats great!!! How long have you been flipping and wholesaling?
What part of Pennsylvania did you do this flip in?
Thank you for the kind words! I do apologize for not getting back to you sooner. It's been a crazy past few weeks with getting everything in line to close this week. My Real Estate agent and his team had a convention in Florida this past week which pushed closing to this Thursday. With this being said, I was down to crunch time to get all my ducks in a row.
To answer your questions, MPP is Maximum Purchase Price. Thanks to J Scott and BiggerPockets for bringing this our way, his book "The Book on Flipping Houses" (A Must have as well as sequel "The Book on Estimating Rehab Costs") explains in more detail how to find a reasonable Maximum price you should pay for a property. What I am finding is this generally is in the area of 50-55% the Actual price you know you can sell the home for (against comps). e.g. The home I aquired, was for 93,900. There is 1 comp in the area that sold end of Dec that wasn't even flipped, just painted and new carpet that sold for 194,000. Taking this into consideration you can clearly see that my purchase price was at least half of my selling price. The reason for this is to give you a good idea on what you should pay for the property while taking into consideration your Holding Costs, Renovation costs, and Selling costs.
Here is what I did for this property. If you Read the captions near the top, it will explain each section. Then from those sections, I attached $ to them. MPP (Maximum Purchase Price) = Sales Price (What my COMPS are near) - Fixed Costs (You can see my running column on this and is what i considered part of my fixed or "Holding Costs") - Profit (How much you want to make on the home) - Rehab Costs (How much money you are willing to put into the home, or what you walked the home and found needed to be fixed) I fluffed some numbers in my fixed costs, but you can see the MPP here would be 91,628.00 as my highest offer on the property. With all into consideration, I found a few more comps in the area around 224-230K so I took the offer at full price at 93900 which was a no brainer. I close Thursday, and Demo starts Friday!!!!!
I was inspired by J's books that I formulated all of his sample spreadsheets a bit further by adding checkboxes to his sample rehab costs sheet I walk the property with my iPad, check the box next to the item in the home that needs changed to where I walk out of the home with a running total (estimated) costs on what it will take to reno the home. Took me a while but I was stuck in analysis paralysis for so long, this was probably 1 of the benefits that came from it. I have created a faster system that works wonderfully. I Have Contracts now furnished for new Contractors, and by using the sheet in the image above, I can pretty much get a good idea on if the house is a good buy or not prior to walking out of the house. I think on the next few properties I find, I will apply everything on site, and then if it's good, put an offer in with my Real Estate agent before even walking back out.
I hope this information helps and finds you well. If you have any questions, feel free to PM me and we can connect! Good luck with your future flips, and have a wonderful remainder of the week ahead!
Thank you for the kind words! I do apologize for not getting back to you sooner. It's been a crazy past few weeks with getting everything in line to close this week. My Real Estate agent and his team had a convention in Florida this past week which pushed closing to this Thursday. With this being said, I was down to crunch time to get all my ducks in a row.
To answer your questions, MPP is Maximum Purchase Price. Thanks to J Scott and BiggerPockets for bringing this our way, his book "The Book on Flipping Houses" (A Must have as well as sequel "The Book on Estimating Rehab Costs") explains in more detail how to find a reasonable Maximum price you should pay for a property. What I am finding is this generally is in the area of 50-55% the Actual price you know you can sell the home for (against comps). e.g. The home I aquired, was for 93,900. There is 1 comp in the area that sold end of Dec that wasn't even flipped, just painted and new carpet that sold for 194,000. Taking this into consideration you can clearly see that my purchase price was at least half of my selling price. The reason for this is to give you a good idea on what you should pay for the property while taking into consideration your Holding Costs, Renovation costs, and Selling costs.
Here is what I did for this property. If you Read the captions near the top, it will explain each section. Then from those sections, I attached $ to them. MPP (Maximum Purchase Price) = Sales Price (What my COMPS are near) - Fixed Costs (You can see my running column on this and is what i considered part of my fixed or "Holding Costs") - Profit (How much you want to make on the home) - Rehab Costs (How much money you are willing to put into the home, or what you walked the home and found needed to be fixed) I fluffed some numbers in my fixed costs, but you can see the MPP here would be 91,628.00 as my highest offer on the property. With all into consideration, I found a few more comps in the area around 224-230K so I took the offer at full price at 93900 which was a no brainer. I close Thursday, and Demo starts Friday!!!!!
I was inspired by J's books that I formulated all of his sample spreadsheets a bit further by adding checkboxes to his sample rehab costs sheet I walk the property with my iPad, check the box next to the item in the home that needs changed to where I walk out of the home with a running total (estimated) costs on what it will take to reno the home. Took me a while but I was stuck in analysis paralysis for so long, this was probably 1 of the benefits that came from it. I have created a faster system that works wonderfully. I Have Contracts now furnished for new Contractors, and by using the sheet in the image above, I can pretty much get a good idea on if the house is a good buy or not prior to walking out of the house. I think on the next few properties I find, I will apply everything on site, and then if it's good, put an offer in with my Real Estate agent before even walking back out.
I hope this information helps and finds you well. If you have any questions, feel free to PM me and we can connect! Good luck with your future flips, and have a wonderful remainder of the week ahead!
Thanks Rick for that well written clarification. I too bought J. Scott's book and received the book on rehabbing. I am 1/3 through the book on flipping houses. I am truly inspired by you and will definitely connect!
Flipping and wholesaling are not my prime activity. I also buy and hold, rehab, land development and subdivision. I work in the Harrisburg, Lancaster, York markets of PA.
I did a Bigger Pockets Podcast #82, give it a listen.
Hi everyone I guess I'll use this for a bit of an introduction, here are a few flips we recently have done in Central Florida.
Flipping and wholesaling are not my prime activity. I also buy and hold, rehab, land development and subdivision. I work in the Harrisburg, Lancaster, York markets of PA.
I did a Bigger Pockets Podcast #82, give it a listen.
Ok. Will do!
@David Krulac if you do not mind me asking. Where do you find your deals? And what is your niche?
@Rick Turman Thank you for sharing. How did you start off recruiting your contractors. I am over this paralysis thing and looking to finish my list of contractors and get something started. Great detailed work.
Hi everyone I guess I'll use this for a bit of an introduction, here are a few flips we recently have done in Central Florida.
Very good portfolio
Hi everyone I guess I'll use this for a bit of an introduction, here are a few flips we recently have done in Central Florida.
Very good portfolio
Thanks Greg, when I get a chance I'll work on a few more to post, have about 280 in total to get through!
I know that hard work with flipping and cost it lot money to fix it property land , I see one in area were live in Dallas lot ten place I can stare to work it but must have license REI that right !! you all know it !!
All of these before and after photos look amazing! There are some very talented and hardworking people in the BP community!!
I know that hard work with flipping and cost it lot money to fix it property land , I see one in area were live in Dallas lot ten place I can stare to work it but must have license REI that right !! you all know it !!
Louis you do not need a RE license to flip houses necessarily
@Rick Turman Thank you for sharing. How did you start off recruiting your contractors. I am over this paralysis thing and looking to finish my list of contractors and get something started. Great detailed work.
Contractors, right! I kind of lucked out with my scenario. I pulled in 2 to work with. There's a great story to go with this also. The first contractor was actually a Home Advisory contractor my buddy and I called on to do some punch list items to finish up a basement reno that we personally did. We were slammed with working for the corporate world and balancing family and needed an extra hand. After he criticized our work and then told us what a great job we did, he fit in right away. We egged him on to working on some flips with us and is now interested to tag a long. He does wonderful work.
The Second Contractor kind of found me. I kept asking my Agent if he had any GC's in the area or knew of any from working with previous investors and would always tell me he would let me know if he came across any. After 3 months, he noticed a company working on a kitchen reno at his neighbors next door. My agent then bumped into him in the driveway and told him that I was actually looking for a GC. He has a history of managing and flipping over 1k Homes in CA and was a flipper himself before switching to contractor work during the turn of the market. Turns out this GC had been praying to come across an investor to follow his passion and start working in the field he wanted to for a while. And here we are now signing a contract to work on our first flip with this new GC.
As J Scott mentioned, I couldn't ever get up early to get to Lowe's at 6AM. Especially since the newborn always kept us up at wee hours of the night. However a lot of investors are saying either this route or attending REIA meetings within your area have the best of outcomes. I have yet to do this but am registered.
Sorry I went on a tangent, however with stories like this, it was almost meant to be, and if it continues, I may be one step closer to following my passion than I ever was a few months back.
Keep that head up, and your GC/Contractor will find you. When I stopped looking is when it all fell in place.
Good luck!
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. ..................................
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.
Congrats Tyler! I'm partial to the SE part of town - basically a few pockets here and there around Harry/Woodlawn to about a half/3/4 mile west then south to Pawnee/I35
Then close to Rock Road on east. On the west - anything S of Kellogg then on west to Goddard. I'm kind of picky though.
Just beware of the clay soils and basements - probably lots of leaky ones and possibly moved foundations. Definitely pay attention to drainage as you should anywhere but a little more important in high concentrations of clay IMO. I've had a bad experience I dont care to repeat due to me overlooking this near the Pawnee/Harry & Rock area on my duplex.
This is my first purchase . using it as a rental. Purchase for 400k. Appraised at 425k. Current market value at 485k. Total remodel expected to cost 70k. Yet to be done. Can't wait.
I use about 20 acquisition methods. About 25% come out of the MLS. Sheriff Sales, Tax Sales, Public Auctions, estate, probate, life estates, title problems, failed perks, flood zone properties, landlocked properties, timber land, farm land, waterfront property, word of mouth, neighbors, properties not for sale, letter solicitation, buying from governments.
Good Morning David.
I started with the wholesale business and got a call from a distress seller.This house is completely a mess. Ugly but BIG. I tried to find a comp; but I can't.Do you know the best way to find the right offer??
Thanks
Try to find recent sales within the last 6 months, as close to the subject geographically as well as size and condition, and maybe even age.
If you have a real estate agent that you use, perhaps you can call them for help.
Also maybe get help from somebody at a local REIA group or another investor in town that you know. If you are totally flummoxed then maybe you should consider a partner or wholesaling
@Rick Turman no worries Rick, The new born Wee hours never go away hahaha. Congrats by the way, I also have a 6 year old. I will try to do the 6 am Lowes run next week and see how that goes. The Lord works in mysterious ways, I got a contact from a friend of a G.C that has been doing work around last night and set up a meet/interview this Friday to connect and plan for a potential business future together. I go to the Local Renters Associations and REI Meet-Ups and i am yet to find the legit REIA group meet in the area. But I will make a point to find it by next week.
JF