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 · 429 posts · 672 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.

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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.  

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  • Rochester, NY · Member since 2016 · 26 posts · 5 votes
    9y

    Look awesome!

  • Real Estate Investor · SMYRNA, GA · Member since 2015 · 24 posts · 57 votes
    9y

    I am so proud of your flip, I love your guts to stop aiming and just fire!  I am looking to add flipping to my real estate portfolio of buy hold rentals later on this fall.  I really enjoyed reading your story

  • Investor · Easley, SC · Member since 2013 · 248 posts · 51 votes
    9y

    That's awesome. Way to go!

  • Steger, IL · Member since 2016 · 57 posts · 13 votes
    9y

    nice story, I like that open up the kitchen walls

  • Philadelphia, PA · Member since 2016 · 11 posts · 4 votes
    9y

    you know nothing about construction yet you did a full rehab in 3 months. uhhh what?

  • Fort Worth, TX · Member since 2016 · 10 posts · 1 vote
    9y

    Congrats on your first flip! Very encouraging to a new Investor like myself.

  • Ray DipasupilPro Member
    Investor · Los Angeles, CA · Member since 2016 · 150 posts · 51 votes
    9y

    A very gorgeous reno, wow! Congrats!

  • Clarksville, TN · Member since 2016 · 238 posts · 96 votes
    9y

    That turned out really well.  Congrats. 

  • Investor · Matthews, NC · Member since 2016 · 9 posts · 1 vote
    9y

    Daniel I would say that what jumps out at me is the ratio of purchase + rehab relative to ARV. At about 90%, you really took a huge risk. While in this case all is well that ends well, may I suggest you thank God, the stars, the moon, or whatever it was that prevented this from turning into a disaster and avoid going so close on margin in the future.

    The standard I have read in many places, including here in articles by Brandon Turner and others, is 70% of estimated ARV for purchase + rehab costs. Not easy to find of course but it provides enough cushion in case rehab and/or carrying costs go over plan. In a strong market, you may be less likely to come in under expected price (unless you didn't do a good job with comps), but as you likely know, markets don't stay strong indefinitely.

    Best of luck on future projects.

  • Philadelphia, PA · Member since 2014 · 12 posts · 0 votes
    9y

    Great job! One question though - your HML rate must have been only about 4%?

  • Seattle, WA · Member since 2014 · 308 posts · 170 votes
    9y

    One flip and your hooked and an expert ready to go again. Oh Jeez, I want to hear about the times you lost your shirt and a fortune. It will happen. Just give it time. Its your article after that is the one I want to read. 

  • Investor · Commack, NY · Member since 2011 · 40 posts · 9 votes
    9y

    Congrats on your first & successful flip!  Looking forward to read about your flipping journey...

  • Investor · Hillsboro, OR · Member since 2016 · 310 posts · 153 votes
    9y

    Questions regarding photos :

    Are the stairs metal ?  Painted wood ?

    The yellow door would have worked well in photos.

    The fireplace is a big part of the front facade.  Did you paint it black ?  Did you consider other colors?  It all came together and it sold - so good job.

  • Investor · Odessa, TX · Member since 2016 · 50 posts · 13 votes
    9y

    Wow what an amazing job. Congratulations. Continue to run the numbers good and conservatively to minimize any pitfalls. 

  • Flipper/Rehabber · Lehi, UT · Member since 2016 · 86 posts · 64 votes
    9y

    Nice Job Daniel! Your story resonates really well with me as I'm about to close on my first property in Salt Lake City (Sugar House Area). It is definitely a competitive market. I got the deal from a wholesaler and there were 10 other investors looking at the property at the same time I was. I put in an offer a little over asking and the wholesaler said I was tied with someone else but since I offered first they gave the deal to me. Beginners luck maybe :). I'm also using a HML, rate is pretty high but worth it since I'm getting 100% of the purchase price from them and this is my first flip. Thanks for sharing, you give confidence to us all.

  • Lancaster, CA · Member since 2015 · 28 posts · 3 votes
    9y

    I am at the step you were in.  I am looking for properties, setting up my lenders and GC/PM's to get this going.  Need the challenge and the rewards

  • Investor · Jericho, NY · Member since 2015 · 171 posts · 148 votes
    9y

    @Dan Beaulieu: Congrats... its just the beginning!!

  • Rental Property Investor · Saint Louis, MO · Member since 2017 · 397 posts · 469 votes
    9y

    Congrats, Daniel! Gorgeous flip. I'm currently under contract for a 4-family. After that, I'll have enough cash for another deal, and I'm considering putting it into a flip to build up my cash position further. I live in St. Louis, which is a much more affordable market... seeing your success on your first attempt is inspiring. Thanks for sharing!

  • Investor · Queens, NY · Member since 2017 · 15 posts · 1 vote
    9y

    @Dan Beaulieu, congratulations. Great job. I love the colors. Calm and not too strong. You have an eye for interior designer. Also, what is the name of the company that you use for HML if you don't mind sharing. Like you said, many lenders don't lend to first time flipper. Please advise.

    Thank You

  • Hurricane, UT · Member since 2017 · 4 posts · 2 votes
    9y

    Daniel, How did you treat the fireplace brick?

  • Swarthmore, PA · Member since 2017 · 49 posts · 12 votes
    9y

    @Dan Beaulieu WOW - beautiful beautiful change!!!!! NICE JOB and congrats!

  • Real Estate Agent / Developer · Las Vegas, NV · Member since 2017 · 58 posts · 15 votes
    9y

    Big ups!

  • Holly RehfussPro Member
    Flipper / Realtor · Philadelphia, PA · Member since 2016 · 4 posts · 1 vote
    9y

    Daniel, you did am amazing job! That renovation is simply Stunning!!

  • Investor · Oak Ridge, TN · Member since 2016 · 7 posts · 3 votes
    9y

    Sometimes when you get to the shoreline with your ships, you need to burn the ships and move forward so you KNOW you have no other option! Awesome looking house, you definitely have an eye for what looks good. Great job! 

  • Sacramento, CA · Member since 2016 · 4 posts · 0 votes
    9y

    Congratulations on your success! This is so inspiring. I love that you mentioned "The Power of Now". Fantastic book to listen to before and during. Again, congratulations on your first flip. Looking forward to hearing about your upcoming ventures. Good luck always.

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