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 · 426 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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  • Hampshire, Hampshire · Member since 2017 · 4 posts · 2 votes
    9y

    nice job! I admire your bravery too

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y

    @Brian Stewart@Christie Gahan  Cleaned with mineral spirits, then painted with masonry paint. Ralph Lauren Noble Grey. = great color. I considered every color there is. I even painted it white first, only to bail on that silly idea. The stairs are just the bamboo flooring continued. 

    @Roman Ven 4% for the 3 months yes... Annualized, they are killing it. 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y

    @Jay C. I never said I was an expert. I did my first deal, got lucky, and wrote about it here. You are hoping I'll lose my shirt? Thanks for that. I, On the other hand, want to wish you continued success. Out of 177 replies, your comment is the only negative one. Congratulations. Haters gonna hate on all forums I suppose. Just thought BP was different.

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    Congrats. Very good for first time.

    Did you factor in the brokerage/staging cost?

    I measure the return on the time spent how much did I get back per hour. As a real estate professional I could have sell one or two properties to regroup. 

    The intangibles like keeping contactors on schedule and keep each other honest and happy is important.  

    Sam Shueh

    Campbell, CA

  • Investor · Denver, CO · Member since 2015 · 30 posts · 19 votes
    9y

    Congratulations on ignoring the naysayers and going with your gut. I really like the design choices you made in the house. I think you should apologize to your designers though. Bright yellow would have been great!

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

    Dan, No hate my friend and nowhere did I say I want you to fail...those are your words. I said when you do.....lets hear that story. You might want to develop a bit thicker skin if your going to do a few more flips.  Truth is you made it out of your deal by the skin of your teeth and you could have just as easily lost money. Did you read all the caution posts?. Why did you do the deal? The promise of cash is why...some may call it greed. Its what tanked our housing and banks a bit back and harmed all. It doesn't surprise me in the slightest the other posts on BP, They are tired of watching Flip or Flop and want in on the action.  So there you go some clarity. Grow up and take the good with the bad....the patters on the back and the honest info as well. GL

  • Flipper/Rehabber · Orange, CA · Member since 2012 · 68 posts · 63 votes
    9y

    hi Daniel, Congrats on a successful flip!  you have "cajones" mucho larger than I do.

    if your goal is $35,000 profit maybe you could look in less expensive areas next time so you don't have to have so much money tied up.  Here in So. Cal I shoot for 20-40% return on my flips because you never know what happens or what hidden expenses you will discover during the rehab.  It looks like you had an approx. 6-7% unleveraged return which would make me very nervous.   

    it's good your first flip went so well, congrats again

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y
    Originally posted by @Peter Hanson:

    hi Daniel, Congrats on a successful flip!  you have "cajones" mucho larger than I do.

    if your goal is $35,000 profit maybe you could look in less expensive areas next time so you don't have to have so much money tied up.  Here in So. Cal I shoot for 20-40% return on my flips because you never know what happens or what hidden expenses you will discover during the rehab.  It looks like you had an approx. 6-7% unleveraged return which would make me very nervous.   

    it's good your first flip went so well, congrats again

     Thanks! No doubt it was risky and I got lucky. I'm learning every day. Believe me I would have loved to make 20-40% on my first deal. Hopefully I can find ways to make that in the future. 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y
    Originally posted by @Jay C.:

    Dan, No hate my friend and nowhere did I say I want you to fail...those are your words. I said when you do.....lets hear that story. You might want to develop a bit thicker skin if your going to do a few more flips.  Truth is you made it out of your deal by the skin of your teeth and you could have just as easily lost money. Did you read all the caution posts?. Why did you do the deal? The promise of cash is why...some may call it greed. Its what tanked our housing and banks a bit back and harmed all. It doesn't surprise me in the slightest the other posts on BP, They are tired of watching Flip or Flop and want in on the action.  So there you go some clarity. Grow up and take the good with the bad....the patters on the back and the honest info as well. GL

     Correct, I did the deal for the promise of cash. Greed? Are all investors greedy? Why do YOU do deals? 

  • Real Estate Agent · Hagerstown, MD · Member since 2017 · 21 posts · 6 votes
    9y

    Congratulations! That's a big first move and the renovations look great!

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

    Dan, I think to be accurate you did the deal with the "hope" of cash . Their is no promise of cash in house flips or REI investing. Thats my whole point of the first post. In the end my posts wont teach you a thing but the market usually does. From the sounds of your post you seem to think you have it all figured out. Funny thing about BP you read alot of 500 units bought with no money down but few come back to update the failures. Failure is ok though. GL

  • Real Estate Agent · Tucker, GA · Member since 2016 · 90 posts · 144 votes
    9y
    Omg this is me today! Totally maxed out, about one week away from listing my house! Congrats the house is beautiful!
  • Investor · Scottsdale, AZ · Member since 2016 · 11 posts · 1 vote
    9y

    Wow that looks amazing! congrats on conquering your fear

  • Kansas City, MO · Member since 2015 · 32 posts · 7 votes
    9y

    Beautiful work @Dan Beaulieu! I find this very inspiring. As someone who is brand new to all of this, I really appreciate your story. Congratulations! 

  • FORT THOMAS, KY · Member since 2017 · 5 posts · 6 votes
    9y
    Daniel Beaulieu for the 150th time, excellent work. My wife is a commercial interior designer and she approves wholeheartedly of your work (which is rare). Question: I assume you used a staging company. What costs were involved there? Thanks so much.
  • Don SpaffordPro Member
    Investor · Idaho Falls, ID · Member since 2016 · 935 posts · 629 votes
    9y

    @Dan Beaulieu Nice job. I'm a little north of you in Idaho but I'm in a similar situation, hard to find good deals in Easter Idaho and any that look to be close to "maybe" make some money, I'm not willing to risk it. Looking for ones that have 15-20% profit margin so in case it costs more than expected I can still at least make something on it. The few great ones I find get snatched up before I can even get an offer in. I would be happy making $5k on my first flip. Something is better than nothing plus the experience earned is worth it.

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y
    Originally posted by @Don Spafford:

    @Dan Beaulieu Nice job. I'm a little north of you in Idaho but I'm in a similar situation, hard to find good deals in Easter Idaho and any that look to be close to "maybe" make some money, I'm not willing to risk it. Looking for ones that have 15-20% profit margin so in case it costs more than expected I can still at least make something on it. The few great ones I find get snatched up before I can even get an offer in. I would be happy making $5k on my first flip. Something is better than nothing plus the experience earned is worth it.

     Agreed! It's pretty difficult to get a 20% return on the first one. The education alone is worth it! 

  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y
    Originally posted by @Oliver Comstock:

    Daniel Beaulieu for the 150th time, excellent work. My wife is a commercial interior designer and she approves wholeheartedly of your work (which is rare).

    Question: I assume you used a staging company. What costs were involved there?

    Thanks so much.

     Thanks! I'm so glad she approves. My realtor's friend works for a small boutique furniture store, and they had worked out a special deal. My realtor paid for professional photography, and for the staging, and also gave me a discount (5%). Basically, she's a superstar. 

  • Charlotte, NC · Member since 2017 · 1 post · 0 votes
    9y

    really awesome job considered this is your first flip!! way to go girl!

  • Residential Real Estate Broker · El Cajon, CA · Member since 2017 · 1 post · 0 votes
    9y

    Hey Daniel, I want to do that!  Congrats on your first flip! Hope my first goes as well. Thanks for the inspiring post! BP rocks!

  • Investor · Akron, OH · Member since 2017 · 8 posts · 2 votes
    9y

    I am impressed. Tell me, how did you finally get yourself to take the leap? I can't get over my fear of losing money and it's been crippling. I've been in the rental business for many years and I'm over it. But I still have a love of real estate and I enjoy (well, mostly) the rehab part. I am at a crossroads where I either need to get a full time job or jump in to flipping. Any words of wisdom would help. Thanks!

  • Tampa, FL · Member since 2017 · 2 posts · 0 votes
    9y
    Congratulations Daniel! The house looks amazing!!
  • Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
    9y

    No way in hell would I roll that much money for that little profit, I can make $35K on a $70K deal some times, with those big numbers, there was not much room for error. pretty risky if you ask me. and to those calculating percentages, I have yet to see anyone buy dinner or a new pair of shoes with percentages, it takes dollars period. 

  • Rental Property Investor · Savage, MN · Member since 2016 · 202 posts · 61 votes
    9y

    Awesome story @Dan Beaulieu! Thank you for sharing your story! It is very motivational! 

  • Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
    9y

    Great job!  Thanks for sharing!

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