35K Profit on my first flip! Before and After pics!

35K Profit on my first flip! Before and After pics!

Dan BeaulieuPro Member
Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes

It is possible after all! After months and months of learning, I decided to dive in to the world of flipping. After a month of searching and offering on properties, I found the winner. I bought it off of the MLS (10 other offers on the property day 1 and I got it.) Ballsy to pay more than everybody else? Probably. I'd like to think that it was the personal letter / picture of my cute dog that got me the deal...But it was an awesome deal even at the price I paid. (363K) I know, I know, that's very expensive in most markets. When I do new things in life, I always go all in.

This property needed a full renovation which I estimated to be 110K, and the after repair value was estimated at 520-550K depending on the finishes. The house needed all new HVAC, decks, siding, railings, flooring. I still went for it!

I shopped for a good HML for 2 weeks and finally found one with relatively good terms that was willing to lend to a first time flipper. I knew nothing about home construction, but decided it would be best to learn as I go. After 3 months of hard manual labor, financial stress, managing subs, the rehab was complete! I had 3K left to my name, 2 maxed out credit cards, 4K a month in holding costs. Like I said before... all in.

The property had multiple offers on the first day and closed 2 weeks later for 536K. I came in under budget, too! :) 

Salt Lake City is a tough market and really hard to find good deals, but if I can buy one on the MLS, use hard money, AND pay realtor fees aaaaand still make money? Anybody can do it.

Now I'm completely addicted.

136Reply
859 views

Most Popular Reply

Real Estate Investor · Dallas, TX · Member since 2009 · 183 posts · 153 votes
9y

I'm impressed, good job.  Don't worry about some of the mistakes you made, learn from them, don't make them again.

I never ever pay anyone up front, unless they are a huge legit company, and usually that means I put it on the credit card, so I have extra security.  Random joe blow company who wants 50% up front?  Nah.  

My philosophy is, I am building a house, I can't go anywhere, you can place a lien, and you can easily track me down.  You?  You are a random person and I am not going to spend one millisecond tracking you down if you screw me.  So either you do the work up front and then get paid or cya, plenty of others out there who don't need money up front.  

See this reply in the discussion

240 Replies

Jump to latestLatest
  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y

    @Chidi Nwadike Unfortunately a 1031 exchange isn't an option for flipping houses, mostly due to the fact that you need to be trading up all of the time. (Also, I need the cash to live on). So I would need to trade up from a 536K house? Yikes! Also, I'd have to identify more properties that I would buy right away, which implies that I need to have amazing deals for flips just lined up and ready to go. I wish! 

  • Realtor · Boynton Beach, FL · Member since 2016 · 52 posts · 12 votes
    9y

    @Dan Beaulieu Great job,  I love the pictures. I'm sure you learned a great deal. I'm currently searching for a flip project in south florida. The market is tight for entry level homes. Maybe I should consider a higher price point as you did. Less competition. 

  • Shiloh LundahlPro Member
    Rental Property Investor · Gilbert, AZ · Member since 2016 · 3k+ posts · 4k+ votes
    9y

    @Dan Beaulieu  I have also heard that saying "The fastest ship to sink is a partner ship!" by a very well known finance guru that has a very big radio show. But to go further in the analogy, have you ever seen one man sail a ship and get very far?

    I was very hesitant towards partnerships at first.  I have even had two partnerships that didn't work out. One went just OK and we still ended up making a little money but it took forever.  The other partnership went really bad and I ended up losing quite a bit of money while he still made money.  I learned a lot from each partnership that didn't go well. 

    I have a buddy that has a lot of experience and we have partnered up on 15 deals over the last two years. Together we have probably made over $250,000 partnering up on deals. This amount far  exceeds the amount that I lost in partnerships.  And since I work between 35 and 40 hours a week in my practice, I wouldn't be able to do this on my own. So in order for me to be successful, I have learned that I need good partners and good systems.

    I think the key to good partnerships is finding someone who is very honest and to define expectations. If I see them dishonest in anyway, even in the small things, they wouldn't be a good partner for me.  Bringing value to a partnership will attract better partners and mentors. 

  • Real Estate Investor · Memphis, TN · Member since 2016 · 940 posts · 695 votes
    9y

    @Dan Beaulieu -  would love to meet up and talk about the Memphis market. Will message you.

  • Rental Property Investor · San Antonio, TX · Member since 2015 · 272 posts · 50 votes
    9y

    Congrats @Dan Beaulieu! Good job!

  • Malden, MA · Member since 2017 · 4 posts · 0 votes
    9y
    thank you so much for this information.i am brand new real Estate investor too. what advise will you gave me
  • Milwaukee, WI · Member since 2017 · 8 posts · 2 votes
    9y

    Daniel your first flip is gorgeous! Is the bathroom on houzz.com? I think I liked it this morning, lol. Congrats on overcoming your fears and jumping in.  Also congrats on establishing such a nice quality brand.  Very inspirational.  

  • Rocky Hill, CT · Member since 2014 · 200 posts · 56 votes
    9y

    @Dan Beaulieu - Beautiful design and rehab. Great job on doing your first deal and educating yourself so it is successfully done. Good luck on your REI journey.

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y
    Originally posted by @Katrice Brooks:

    Daniel your first flip is gorgeous! Is the bathroom on houzz.com? I think I liked it this morning, lol. Congrats on overcoming your fears and jumping in.  Also congrats on establishing such a nice quality brand.  Very inspirational.  

     Thank you! It isn't posted anywhere besides facebook and here. "establishing a nice quality brand" wasn't something that I thought of. Nicely put! Buyers can tell when flippers have cut corners. I think it's really important to do quality work, and also helps with my own satisfaction in the end :) 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y
    Originally posted by @Tiffanie Vendryes:

    @Dan Beaulieu Great job,  I love the pictures. I'm sure you learned a great deal. I'm currently searching for a flip project in south florida. The market is tight for entry level homes. Maybe I should consider a higher price point as you did. Less competition. 

     If the deal is good, there will be competition! Don't forget, there will also be less end buyers at that higher price point. If you do quality work though, they might fight over it like they did with mine!

  • Property Manager · Gurnee, IL · Member since 2012 · 94 posts · 43 votes
    9y

    Congratulations! Beautiful work. 

  • Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
    9y

    Good Job

  • Certified Public Accountant · Houston, TX · Member since 2015 · 72 posts · 24 votes
    9y
    Originally posted by @Dan Beaulieu:
    Originally posted by @Shiloh Lundahl:

    @Dan Beaulieu Great job. Congratulations. I love to hear success stories about flips. Did you partner with anyone or have any mentors coach you through the process?  

     I didn't have mentors or coaches, or partners. I wish that mentors who are willing to take from their highly valued free time to hold my hand through a deal would magically appear. This simply isn't the case. Moving forward I hope to network more and get better systems in place, but I will probably always be without a partner. One "Guru" told me something once that really resonated: "The fastest ship to sink is a partner ship!"

     Well....with this site and all the resources you've absorbed, you have lots of mentors.  Seriously.

  • Real Estate Investor · Coventry, RI · Member since 2015 · 17 posts · 3 votes
    9y

    Hi Daniel-

    I must say this is absolutely stunning! What a beautiful renovation and I think you guys did an awesome job! This is definitely encouraging for any new investor but as you mentioned, it does take time and research so to everyone who is saying this was .. yeah maybe a little bit, but when you educate yourself and when you are motivated- you can do something as wonderful as this!

    Excellent job- good work and ethic :) 

  • Investor · Fayetteville, NC · Member since 2017 · 38 posts · 5 votes
    9y

    First of all congrats @Dan Beaulieu! Secondly, EVERY aspiring flipper needs to read your post. 90% of the people on here are so afraid to make a mistake, they never get started. Guess what newbies (I am one, so I'm allowed to bust on y'all ;). You are GOING to make mistakes. It's pretty much guaranteed...but it's an integral part of the learning process. Daniel found a house, did the analysis he likely learned much of here on BiggerPockets, and took the plunge! Did he make mistakes? Of course! Was he worried, stressed, etc? OF COURSE! Would he do it again (and even better next time)? Without a doubt.

    Congrats again!

  • Harrisburg, PA · Member since 2014 · 15 posts · 4 votes
    9y

    Daniel - great job ! Appreciate you sharing your story and the transparency in detailing the contractor mistake. Beautiful finishes - could you please message or list the specs on the kitchen flooring you used for the project ? 

  • Investor · Salt Lake City, UT · Member since 2016 · 89 posts · 41 votes
    9y

    This is one of the coolest rehabs I have seen and proudly out of Salt Lake City. Nice job @Dan Beaulieu as I am just getting down the road to my first flip its awesome to see it can be done.

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y
    Originally posted by @Brandon Neiss:

    Daniel - great job ! Appreciate you sharing your story and the transparency in detailing the contractor mistake. Beautiful finishes - could you please message or list the specs on the kitchen flooring you used for the project ? 

     Thank you! I'd absolutely love to share. 

    The kitchen cabinets were done by a local guy, and cost about 6K. Honestly I could have bought all Ikea Cabinets and then gone to semihandmade.com for the shaker doors and saved a couple thousand bucks. 

    The sink and faucet are from amazon, as well as the cabinet pulls. 

    The backsplash is 3 x 6 ice blue glass subway from a local tile store.

    The hardwood flooring is Lumber Liquidators Grey Mist Bamboo (2.00 per sq ft). Honestly kinda sucks and I wouldn't use it again. 

    The countertops are all cement grey quartz. (Not Cheap! Should only go in high end homes.) 

    Appliances were all samsung and on sale at lowes for 40% off. 

    All light fixtures are from allmodern.com (awesome site!) 

  • Developer · Temecula, CA · Member since 2017 · 16 posts · 2 votes
    9y
    Thank you for sharing and answering all the questions! The house looks beautiful. Congrats.
  • Self Employed - Cell phone repair · Milpitas, CA · Member since 2014 · 52 posts · 17 votes
    9y

    Excellent story!

  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    OMG that kitchen <3 

    Excellent story you did a great job. You may want to talk to a CPA now to set up some estimated payments and some planning for 2017- I've got a few clients right this moment who are literally wishing they had that's for dang sure :) 

  • Investor · Chesapeake, VA · Member since 2017 · 10 posts · 2 votes
    9y

    Congrats Daniel 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y
    Originally posted by @Natalie Kolodij:

    OMG that kitchen <3 

    Excellent story you did a great job. You may want to talk to a CPA now to set up some estimated payments and some planning for 2017- I've got a few clients right this moment who are literally wishing they had that's for dang sure :) 

    That's definitely a good point! I'll be proactive on taxes and not let it just overwhelm me next spring. 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    9y

    Here are more pics. Such a cool house! I wanted to move in myself in the end. 

  • Dallas, TX · Member since 2017 · 1 post · 1 vote
    9y

    Great job and congrats Daniel! The photos look great! Hope I have success on my first project as well. Any advice on getting started for a fellow newbie? 

Join the conversationCreate a free account to reply, vote on answers and follow this thread.