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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  • Virtual Assistant · Austin, TX · Member since 2015 · 1 post · 0 votes
    9y

    There's so much inspiration here. You're taste is fantastic and your ambition is fire! What a turnout, many blessings! 

  • Real Estate Agent · Hopewell Junction, NY · Member since 2015 · 60 posts · 11 votes
    9y

    @Dan Beaulieu

    So inspiring 

    Do you mind if I pM you ?

    I have question on HML

    great job!

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

    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. 

     70k? I'd love to be in that market! 

  • Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes
    9y

    My gosh, that is beautiful house! I'd have a hard time letting it go if I bought a house that nice. 

  • Richmond, TX · Member since 2017 · 16 posts · 0 votes
    9y
    Congrats! Beautiful finishes and profit. Takes balls to go big on a first flip. I'm a believer👍🏾thanks for sharing
  • Dan BeaulieuPro Member
    OP
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 426 posts · 672 votes
    9y
    Originally posted by @Alana Bower:

    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!

    Thanks a ton for the support! For some, the fear of losing money is greater than the gratification they'd feel if they risked it to make more. For me it's the opposite, and admittedly I'm pretty reckless, and could use a lesson from you on that! I could have just as easily lost money, but being in total control of everything made it less scary. We don't worry about things that we can control, because, we have them under control! 

    Owning tons of rentals is the end goal for me, and flipping is a job so that I can afford to buy tons of them. Seems like you are already way ahead of me in this respect, so I should be asking you for advice!

  • Saint Louis, MO · Member since 2017 · 5 posts · 0 votes
    9y

    Congrats, from a newbie in St. Louis, MO still looking to do his first flip! Inspiring to hear about your success!

  • San Francisco, CA · Member since 2017 · 5 posts · 3 votes
    9y

    Great job on the rehab and staging. Who pick out the finishes & did the furniture staging? It's perfect -  complementary scaled to the space and architecture.

  • Investor · Longwood, FL · Member since 2015 · 221 posts · 130 votes
    9y

    Thanks for taking the time to discuss your thoughts. I think they are extremely helpful to others. Keep up the dream.

  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    Nice. Great stuff. Always love when people make money.

  • Investor · Murfreesboro, TN · Member since 2013 · 59 posts · 80 votes
    9y

    35K!! Good job!! I'm sure you learned a lot thru the process as well, which is invaluable. Never stop learning! Now take your new found knowledge apply to the next one, and the next one, and the next one, etc. Tweak the process along the way and profits generally tend to rise. Yes, contractors can be a pain. Personally I don't even bother calling the big guys with the fancy building or the rusty pickup truck guys with adult beverage cans rolling around in the floor board.. I go for middle of the road guys that seem to have some genuine integrity about them, ones that I see I can communicate with. I'm quick to point out areas they need to improve in and quick to compliment them on a job well done. The ones that do good I keep around, the ones that create drama or just don't seem to care about quality get cut quick.. Develop a long list of contractors for when one you thought was a keeper turns bad, believe me it happens.. Networking with fellow flippers is definitely a good thing. You can reach out to each other when you need a second opinion, share contractor experiences, etc.  I agree with avoiding partnerships, most partners are like cute puppies at the beginning but soon grow into ugly dogs.. 

  • Investor · Knoxville, TN · Member since 2013 · 10 posts · 4 votes
    9y

    Wow...What a transformation!

  • Real Estate Investor · chicago, IL · Member since 2012 · 1k+ posts · 231 votes
    9y

    I have to admit, in reading thru your posts, you did your homework. you even knew that the higher the price, the less the end buyers HOWEVER you had multiple offers the 1st day so you knew your market. always be hyper local, which you were. and you had most of your bids ahead of time.

    only thing I would consider is your rate per hour. what were your TOTAL hours involved in this? looks like, at a minimum, you worked 14 hour days for 3 months. $35k/1680 hrs = $21/hour. could you do better at a day job and (more importantly) could you get round year work flipping (tought to do right now). for us "day jobbers" I love do investing on the side. extra income. nothing better than texting a renter and a contractor (swapping info) so I am OUT OF IT. :)

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

    I have to admit, in reading thru your posts, you did your homework. you even knew that the higher the price, the less the end buyers HOWEVER you had multiple offers the 1st day so you knew your market. always be hyper local, which you were. and you had most of your bids ahead of time.

    only thing I would consider is your rate per hour. what were your TOTAL hours involved in this? looks like, at a minimum, you worked 14 hour days for 3 months. $35k/1680 hrs = $21/hour. could you do better at a day job and (more importantly) could you get round year work flipping (tought to do right now). for us "day jobbers" I love do investing on the side. extra income. nothing better than texting a renter and a contractor (swapping info) so I am OUT OF IT. :)

     Scott, No doubt my hourly rate was aweful. I'm going to be more hands off in the future for sure! 

  • Los Angeles, CA · Member since 2016 · 12 posts · 1 vote
    9y

    This looks so great congratulations @Dan Beaulieu!! 

  • San Francisco, CA · Member since 2017 · 29 posts · 3 votes
    9y

    Wow, very nice! Congrats and here's to many more!

  • Real Estate Agent · St Petersburg Tampa, FL · Member since 2017 · 114 posts · 34 votes
    9y
    Congratulations
  • Flipper/Rehabber · Boca Raton · Member since 2015 · 231 posts · 81 votes
    9y
    Originally posted by @Dan Beaulieu:

    @Kerry Boyle 

    76000 - 35000 = 41000...

    So yes I had 41000 to pay the realtor 5% commission and 15k hard money costs

    so wait how does that work? $41k to pay of the 5% fee and 15k 

    5% of SP of 536,000 = $26,800

    HML = $15,000

    total = $41,800 You lost money ? 

  • Specialist · Indianapolis, IN · Member since 2016 · 841 posts · 480 votes
    9y

    @Dan Beaulieu PM me and let me know who you used for the Hard Money

  • Investor · Seattle, WA · Member since 2017 · 1 post · 0 votes
    9y

    Congrats, very inspiring.  I'll second your comment about selecting the cheapest contractor.  That's almost always a bad idea.  In addition to checking references and backgrounds, I think it's a good idea to unpack their bids to understand how they're getting to that low number.  If they can't talk you through it, move to the next bidder. 

  • Kuba F.Pro Member
    Real Estate Investor · Los Angeles, CA · Member since 2013 · 2k+ posts · 694 votes
    9y

    @Dan Beaulieu congratulations on your first one!  

    There are certainly lessons you'll take from this that you can use to improve on the next one like buying lower and improving your margins, improving your timelines, but hey, you came out of the other side in the green which is a great start.  

  • North Las Vegas, NV · Member since 2017 · 9 posts · 1 vote
    9y
    Wow! Congrats! The house looks amazing!
  • Investor · West Hollywood, CA · Member since 2017 · 14 posts · 4 votes
    9y

    From one newbie to another, fantastic job! Very impressive! Last summer I had a falling out with my 2 business partners who also happened to be really good friends. After that I decided that I would move forward on my own. Taking on a partner or partners isn't worth the hassle. The only exception will be partnering with an investor on a buy and hold.

  • Residential Real Estate Broker · Oak Ridge, NJ · Member since 2017 · 1 post · 0 votes
    9y

    Congratulations!  Thanks for sharing the benefit of your experience.  And your project turned out gorgeous...you deserved to make a great profit!

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

    @Kerry Boyle 

    76000 - 35000 = 41000...

    So yes I had 41000 to pay the realtor 5% commission and 15k hard money costs

    so wait how does that work? $41k to pay of the 5% fee and 15k 

    5% of SP of 536,000 = $26,800

    HML = $15,000

    total = $41,800 You lost money ? 

    No, I didn't lose money.  

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