Joliet, IL · Member since 2016 · 119 posts · 88 votes
I just completed my FIRST FLIP! The rehab took approximately 3 ½ weeks. The home is a 2bd, 1ba townhouse that is slightly over 1000sq ft located in Illinois.
Numbers:
Purchase Price with closing cost: $55,290.25
Rehab Cost: $28,815.60
Total in: $84,105.85
Holding cost: Roughly $450 a month (insurance, HOA fees, utilities, & taxes)
ARV: $115,000
Estimated Profit: $29,094.15
The property just went onto the market today. Here are the before and after photos!
Vendor · San Diego, CA · Member since 2016 · 55 posts · 16 votes
9y
Amazing work! One suggestion I would throw out there is to hire a real estate photographer for around $100 to photograph the whole house. I use them for my airbnb listings and there is a tangible increase in price with professional photos vs iPhone pictures. The wine bottle was a great touch, definitely use it again!
Joliet, IL · Member since 2016 · 119 posts · 88 votes
9y
@Chris Low What do you exactly mean by "soft cost on selling"? But I took the holding cost into consideration when estimating my profit. I just didn't show the math. But here it is below! I was all in at 84,105.85. I estimated for 4 months holding time (hopefully it doesn't take that long). With holding cost being roughly 450 a month that brings me to a total of 1800. 84,105.85+1800=85905.85 ARV of 115,000-85,905.85 brings me to my estimated profit of 29,094.15.
Joliet, IL · Member since 2016 · 119 posts · 88 votes
9y
@Fred Pineda There were usually 2-3 guys there at a time. Lesson I learned: 1. You never close when you expect to close 2. There will ALWAYS be unexpected things that come up with a flip. Whether big or small they will come up and come with a price tag so be ready. Thank you! I hope so too!
Joliet, IL · Member since 2016 · 119 posts · 88 votes
9y
@Mark Caiazza May I ask how many sq ft the house is? Are you doing the work yourself? The HOA is suppose to take care of any exterior work but as you can see the paint could you a little sprucing up. I ultimately think its market dependent. I think it works for this type of property, I find it appealing but i would agree with you it could use some caring for. I think if this were a single family home in a better area it could have impacted it.
Pittsburgh, PA · Member since 2010 · 6 posts · 4 votes
9y
Inspiring.
However, are you marketing it yourself as a FSBO or contracting a real estate company?
Is the sales transaction costs part of your total (all-in) costs?
You may want to consider getting your real estate license if you are going to do flips as a business, to recapture 1.5 to 3% of the sales price as commission for the sellers agent expense. This could help offset other personal contribution costs.
Impressive at 21.. the name of the game in real estate (one of them anyways), is time.
You're clearly "do-ing" instead of "watching/hoping/waiting" which is how you have to be.
I bet you learned alot about contractors, scheduling and pricing!!
Philadelphia, PA · Member since 2016 · 3 posts · 2 votes
9y
@Angelica Osusky Congratulations on a wonderful flip ! I haven't completed my first deal as of yet; however, your accomplishment is very inspiring.
If I may ask a question, one of my "limiting beliefs" or fear is not being able to find a good contractor. Can you shed any advice, approaches or tactics on how you went about hiring your contractor ?
If you'd like to expand on the question more please feel free to message me.
Joliet, IL · Member since 2016 · 7 posts · 2 votes
9y
@Angelica Osusky,
First of all, GREAT JOB! If you don't mind me asking, did you use a GC for the rehab and if so, who was it and would you recommend them? I'm looking at a couple properties myself in the Joliet area and I'm always looking for good contractors. Thanks
Burbank, CA · Member since 2016 · 8 posts · 2 votes
9y
Awesome @Angelica Osusky! I'm looking forward to hearing about final purchase price also and any other things that came up in the process from now until you completed. Very inspiring
Joliet, IL · Member since 2016 · 119 posts · 88 votes
9y
When my bid was quoted it was quoted with materials and labor together. So I don't know the exact break down. However, I ended up paying for the materials myself asides from the carpet, kitchen cabinets, counter top, and bathroom tile. Material were just under $4000. Appliances were roughly 1200. Check out my blog post on my sight for some more day to day, week to week activities of the rehab at primetimerei.com/first-flip :) @Sonny H.
Thanks for responding. I did my first flip 11-12 years ago so its been a while. You mentioned about and LLC for your flips and from my experience and current set up...it is wise to set up the LLC for your protection against legal claims. We use an llc. ...also if you need hard cash funding most lenders lend to LLC's not individuals. Again good job and God bless.
Joliet, IL · Member since 2016 · 119 posts · 88 votes
9y
@Lee Smith I am selling with a realtor. I think I may have forgot to include the selling closing cost in my numbers. Oops! But yes not bad. I love the name of your company. Very clever! May I ask the pros and cons of being an agent/broker as well as as investor. I have been thinking about getting my licenses. I think if I can work as an agent it will provide me with great learning experiences. I really am interested in real estate because I like it, the money is just a bonus:)