Updated over 8 years ago on . Most recent reply
Our first flip in Idaho!
I have to start with saying that I have been reading and listening on BiggerPockets for a while and had a hard time finding properties to begin with. My wife is a Realtor with KW and I help her out with placing her signs for open houses on the weekends and after I am done I drive for dollars. I write down every home that could be interesting and try to stop by estate sales that don't have an Agent sign in the yard.
Last year we ran into an estate sale that was perfect for us. We stayed in touch with the owners over the months, and after meeting up a couple times and some negotiations we were under contract.
I'll keep it simple to the details but let me know if you have any questions.
4 bed - 3 bath - 3 car garage - SFH
Purchase price: $160K
1st Loan: $112,000
2nd Loan carried by sellers: $49,000
Down payment: $2,500
Rehab Cost: $13,000
Real Estate fees and closing cost: $8,900
Basic list of repairs: carpet, vinyl tile floors, vinyl plank flooring, faucets, toilets, light fixtures, thermostat, interior paint, appliances, gutters, backsplashes, resurfaced counter in kitchen with an epoxy countertop, re-stained all cabinets throughout the house, added pulls to all cabinets, new kitchen sink & faucet - finished it off with some light staging for photos and to help it sell quicker!
We initially set the ARV at about $215,000 but the market picked up really fast over the 8 week rehab period and into the new year, so we decided to list for $229,900.
The house came on the market on a Friday and received 5 offers over the weekend. After some negotiations we were under contract for $234,500. We had to kick back an additional $900 for some repairs that we were not able to address because of a snow covered roof all winter long.
After all other fees and holding costs we made a profit of $45,000.
The total amount of cash that was required for this deal was $20K. The bank required us to put $17,500 into a bank account from which we could draw for repairs and we put down $2,500 for the owner carried loan.
We learned a lot from our first flip and did most of the work ourselves except for carpet and paint.
This really helped us to understand on what parts we will tackle on the next flip and what not.
Without BiggerPockets I am sure I would have missed a lot in my calculations but everything came in exactly as my predictions were except for the increased market value of the home.
We don't have many great before photos, but here are a few.
Most Popular Reply
Congrats on your successful rehab!
Yes, our market is blazing. The key is finding the deals with potential, being able to evaluate them extremely quickly and making near instantaneous decisions.
Welcome to the flipping world!
It's been my world for decades. Times require changes & education for all of us on a very regular basis.