$50K Flip Property Success

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$50K Flip Property Success

Rodney Marcantel
Coppell, TX · Member since 2014 · 188 posts · 125 votes

Just got an offer 4 days after listing my latest flip property $6,500 over asking. Working with Listing Spark for the first time has saved me over $6,500 in commissions! So that's $6,500 over asking plus $6,500 in commission savings = $13K in additional profit over asking price.

Breakdown of which I did 70% of the work myself...

Purchased home for $112,000 (Cash) 2/24/2017
Closing Costs: $1,461.06
Rehab Expenses: $58,540.78
Holding Costs: $278.17 (Utilities)
Offer Accepted: $230,500 (Asked $224K) 5/8/2017
Profit: $52,637.22
Total Rehab time: 69 days
Days on market: 4 days

Home Facts: 1576 sq.ft. 3/2/2, new roof, foundation (21 piers), masonry work, new HVAC, New Appliances, New cabinets (soft close), totally gutted bathrooms, new floors throughout, new landscaping and sod, painted brick and all interior and 2 non-load-bearing walls removed in kitchen.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y

nice work !! that's a very quick flip.. you must have some good crews as well.

what about cost of capital.. did you do this all out of pocket ???

Listing Spark ??? whats that

did they offer over list and then ask for seller pre paid credits for their loan.. virtually every deal I have ever done under 300k the buyer ask for seller credits for Closing costs.

how about property taxs?  need to factor those and insurance.

OH I see you did most the work yourself  so you can't beat on the GC or the help

end of the day nice job.

Most folks who would have to hire this out.. and get HML would not do near as well of course but still be in the Black

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  • Chris Sullens
    Oklahoma City, OK · Member since 2017 · 47 posts · 21 votes
    9y

    Will you share the color paint you used for the walls? I'm about to paint my first property right now, and I'm looking to do something very similar to what you did there. Thanks!

    0Reply
  • Bob Adams
    Plant City, FL · Member since 2017 · 8 posts · 3 votes
    9y

    great job, looks fantastic!

    0Reply
  • Roger Mohnani
    Richmond Hill, NY · Member since 2017 · 6 posts · 3 votes
    9y

    i love it so beautiful

    0Reply
  • Brooke Leach
    Property Manager · Chicago, IL · Member since 2016 · 17 posts · 5 votes
    9y

    Awesome success story, thanks for sharing! 

    0Reply
  • Steve Kontos
    Investor · Great Neck, NY · Member since 2016 · 679 posts · 467 votes
    9y

    @Rodney Marcantel

    Congrats!  Looks great.

    0Reply
  • June B.
    Glassboro, NJ · Member since 2017 · 13 posts · 1 vote
    9y
    WOW! Congratulations on your success!! We're you able to do this without using your own money?
    0Reply
  • Marc James
    Investor · New Orleans, LA · Member since 2017 · 2 posts · 0 votes
    9y

    Congrats, great work - In Nevada, I was doing most of the work myself with family also, not always easy !!

    How would your cost have changed if you hired somebody to do the work - That's a big rehab cost for a big portion of self completed work?

    0Reply
  • Abram Howard
    Olympia, WA · Member since 2016 · 45 posts · 8 votes
    9y

    That is great to hear and see the financial breakdown and timeline of your flip.

    Thanks for your post!

    0Reply
  • Vernon Miller
    Investor · Crossville, TN · Member since 2016 · 59 posts · 29 votes
    9y

    Awesome job!

    That is a great example of "How it Should Be Done"!

    Lots of investors/ flippers should take notes. Once again great job on the refurb and net profit. 

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

    very nice job. I am sure the buyers are pleased and willing to pay top dollars for it.

    Congrats.

    1Reply
  • Harding Easley
    Rental Property Investor · Phoenix, AZ · Member since 2015 · 9 posts · 3 votes
    9y

    Congratulations...very inspiring!

    0Reply
  • Larry Finlon
    Investor · Syracuse, NY · Member since 2017 · 2 posts · 1 vote
    9y

    Looks super ,good luck on your next one!

    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    @Scott W. I put in 8 hours a day, 6 days a week over 69 day period. That's approximately 473 hours.

    @Andrew Herrig @Paul KothariI found it on a software property analyzer I have a membership with. Rehab Valuator. Timing is what got me this deal and the ability to pay cash and close in 7 days.

    @Samantha Lee In Texas you don't have to be licensed to be a contractor. I've just got 10+ years experience doing construction in my spare time. Also, I was an Electrical Engineer for Alcatel for 18 years and a Web Developer so I have experience in design and electrical codes and even plumbing codes. I use master electricians and plumbers for all of that work per city code requirements.

    (PDF Link)

    5Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    @Marc James The only thing I would have preferred to contract out in labor would have been the outside soffit repair including the 3 front corbels I ended up repairing, flooring installation, and tile work. Everything else I like to do (i.e. demo, wall reconstruction, trim work, cabinet installs. I also repaired two ceiling fans that were broken and cleaned them up (painting one of them). Was easy to do. I even painted some ceiling light fixtures that were gold color to match the house (silver). I love building barn doors and installing them too.

    I ended up doing the other work mostly because my trades couldn't work with my time schedule (just too busy). So I opted to do the tile work myself (11 days but saved over $2,000). Laminate was easy since I've done that before in a retail business I owned for 8 years in the past.

    3Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    @Chris Sullens The paint we used was Sherwin Williams.

    Inside Walls - Zircon SW-7667

    Accent Walls - Web Grey SW-7075

    Outside - Summit Gray SW-7669

    Inside Trim - Bright White

    We bought a ton of sample to finally get to these colors and so glad we did. Zircon looks great in any light and doesn't change much with outside vs. inside lighting like most grays do.

    6Reply
  • Jonathan Blum
    Rental Property Investor · The Dalles, OR · Member since 2016 · 38 posts · 42 votes
    9y
    Your comment below is SPOT ON.  Choose SMALLER rehabs and find the WORST property in the BEST neighborhood.  If you buy it right, you'll always come out ahead with this strategy.  If its upsidedow, we usually turn those into rentals until the market supports selling it.  Your flip looks awesome.  Great style!  You're lucky to have all those skills and some serious drive.  We spent about 500 hours on our last flip, but it took more than 5 months.  More time=higher holding costs.  Great work!

    Originally posted by @Rodney Marcantel:

    So lesson learned. I'm sticking with 2,000 sq.ft. or less properties and looking for them in really bad condition but in good neighborhoods. Also, observing other updates in those sub-divisions to get a feel for price/sq.ft. and curb appeal.

    1Reply
  • Tony Hill
    Long Beach, CA · Member since 2016 · 1 post · 0 votes
    9y

    Great Job!

    0Reply
  • Mike Lauer
    Investor · Milwaukee, WI · Member since 2017 · 44 posts · 69 votes
    9y

    Wow, nicely done. As someone about to do my first flip, this is very motivating and inspiring. Thanks for sharing.

    1Reply
  • Mercedes Masrua
    Orlando, FL · Member since 2017 · 2 posts · 0 votes
    9y

    I have a question. I am in the middle of finishing my first flip. Everything went wrong what could be a very profitable flip over 60k will be like 41k. However I have a situation the contractor that ruined everything never got a permit for an additional room we converted from a garage. What are my options as I dont think at this point I can afford to risk the inspector asking me to re do the garage. I learned my lesson but right now I am ready to sell and Im not sure if I can with this room.

    0Reply
  • Rey Vargas
    Jacksonville, FL · Member since 2016 · 6 posts · 6 votes
    9y
    Wow ! I love how the house turned out. Congrats on this flip, truly a lovely home for the buyer.
    1Reply
  • Edgar Martin
    Peoria, AZ · Member since 2017 · 27 posts · 4 votes
    9y

    Excellent job Sir! New to BiggerPockets here and I am curious to ask about your calculated profit.

    I'm sure I miscalculated somewhere but with your given profit figure I noticed you're quoting a lower profit calculation. Would'nt the profit be closer to 58k?

    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    @Mercedes Masrua Always get a permit for any new addition or any added space. Think of it like this... I purchased a home 4/2/2 with 2 large living areas and a dining room that was never used because the kitchen nook was so large. We converted a laundry room and hall closet to a 3rd bathroom (handicap accessible) and converted one living area into a large bedroom. So we went from 4/2/2 to 5/3/2. We got them permitted so when we sell (it's rented now) we can officially list it as a 5/3/2 property.

    If you're not selling (lease), then you're ok for now. But if you're selling, you'll have to disclose the change in number of rooms. So you'll have to go back and get it permitted to sell. Shouldn't be too big of a budget hit depending on what all the additions that were done. If only electrical outlets and you took pictures before drywall install, then an inspector likely will approve if done right and by an electrical company with a Master Electrician who is approved by the city (i.e. has permit to work in your city). Also, egress is very important in a room addition whether French doors to outside or a window to egress code. Also, pictures of insulation installed in the walls helps too. Otherwise, you'll have to cut out drywall and patch back after inspection. Hope this helps.

    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    @Edgar Martin Excel calculates the numbers.

    $230,500 Sale price
    - $170,859.84 Total Expenses before commission
    - $7,322.00 Commissions to sell
    = $52,318.16 Profit

    2Reply
  • Frank Y.
    Lender · Philadelphia, PA · Member since 2017 · 225 posts · 72 votes
    9y
    Congratulations! Nice job!
    0Reply
  • Mercedes Masrua
    Orlando, FL · Member since 2017 · 2 posts · 0 votes
    9y

    @ Rodney, Thank you for your answer. I have no pictures and the contractor took my money and never finished the job. The electricity was left on the same place just put inside the new wall. I guess I will have to break the wall to show the insulation.  I added a window after the fact but is no permits on that either. Do you think I am going to have a hard time getting this permit? I am already up to 60k in expenses plus I paid for the house cash. I have to hire another person and pretty much pay again for things they were wrong. Six months later the first guy took 5 months and after 42,000 he was out of money and left. I can't afford one more day of having this house empty but I need to sell I can't afford to rent either. I definitely learned but I was told I can sell with a disclosure that the room is not permitted. What would be my best choice. This room already was there but was never finished and had the garage door.  

    0Reply
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