$50K Flip Property Success

Real Estate Deal Analysis & Advice
9yFollow

$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.

48Reply
166 views

Most Popular Reply

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

Podcast Guest on Show #222
JLH Capital Partners51 Review
WebsiteView Page
9Reply
See this reply in the discussion

151 Replies

Jump to latestLatest
  • Chris Sellers
    Akron, OH · Member since 2017 · 9 posts · 3 votes
    9y
    Congrats, I'm working toward doing the same thing one day. Your story is very inspiring for the a newbie like my self. Thank u
    1Reply
  • Jarrett McAllister
    Sacramento, CA · Member since 2017 · 15 posts · 3 votes
    9y
    The looks great! Awesome job. 👍🏻
    0Reply
  • Megan M.
    Morgantown, WV · Member since 2017 · 7 posts · 3 votes
    9y
    Thanks for sharing, it looks great!
    0Reply
  • Jerry M.
    Port Jervis, NY · Member since 2017 · 9 posts · 6 votes
    9y
    Congratulations on your successful flip!
    0Reply
  • Kalei Tauiliili
    Las Vegas, NV · Member since 2017 · 3 posts · 1 vote
    9y
    Awesome job!!! I am looking for my first flip right now in Las Vegas. I pray it goes as well as this flip of yours. Love the interior.
    1Reply
  • Holly Emmett Correira
    Investor · North Dartmouth, MA · Member since 2017 · 10 posts · 6 votes
    9y

    Looks great!  That's a lot of work for under $60K in renovation costs.  Great job keeping costs down as well.  

    1Reply
  • Jordan CoughenourPro Member
    Denver, CO · Member since 2016 · 8 posts · 0 votes
    9y

    You make it look easy! Congrats! Was this is Coppell.

    How did you figure that the walls were non load bearing? Did you hire out an engineer?

    0Reply
  • Vy Mai
    Andover, MA · Member since 2015 · 103 posts · 13 votes
    9y
    Pretty awesome! Love the barn door
    1Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y
    Originally posted by @Jordan Coughenour:

    You make it look easy! Congrats! Was this is Coppell.

    How did you figure that the walls were non load bearing? Did you hire out an engineer?

     Lewisville. And no I didn't have to hire an engineer. I'm an engineer (electrical with mechanical background). But if you know how the roof is held up and the direction of the joists, it's pretty easy to figure out.

    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y
    Originally posted by @Vy Mai:

    Pretty awesome! Love the barn door

     First barn door I created in my house built in 2016. 8 foot 3 inches tall by 43 inches wide.

    2Reply
  • Vy Mai
    Andover, MA · Member since 2015 · 103 posts · 13 votes
    9y
    Rodney Marcantel very impressive for the first one. I really love the looks of it. Hmm is it heavy to push? Just wondering as I've never used one before. Only seen it on tv :)
    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y
    Originally posted by @Vy Mai:

    Rodney Marcantel very impressive for the first one. I really love the looks of it. Hmm is it heavy to push? Just wondering as I've never used one before. Only seen it on tv :)

     Not heavy at all when on the track. But real heavy off the track.

    0Reply
  • William C.
    Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y
    Great job. Maybe I missed it but was there taxes and insurance? Holding costs are low. Never the less nice work.
    0Reply
  • William C.
    Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y
    I just saw your cost break down. Amazing job with your projections. I'm sure your aware you'll encounter more losing costs at settlement. Transfer tax, etc....I'm guessing that's when you'll pay the taxes? Also, I'm guessing the insurance was $2000. I'm certainly not trying to not pick, but profit is profit. Most of all, good luck with inspections and getting to the closing table. Appraisal and mortgages commitments await.
    0Reply
  • Candace Edmonds
    Wholesaler · Painesville, OH · Member since 2016 · 4 posts · 1 vote
    9y

    Love the inside of the shower too. Really looked rich. I'm sure that ended up a selling feature of this house! The owners will be proud when their company comes to see their house, and then AGAIN when they go to use the bathroom!

    1Reply
  • Mark RichardsonPro Member
    West Friendship, MD · Member since 2016 · 18 posts · 6 votes
    9y
    Great finished product! Very impressive!
    1Reply
  • Kendrick Young
    Real Estate Investor · Runnemede, NJ · Member since 2017 · 1 post · 0 votes
    9y

    Awesome job!

    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y
    Originally posted by @William C.:

    Great job.

    Maybe I missed it but was there taxes and insurance? Holding costs are low. Never the less nice work.

     Yes, but that is factored into the closing costs.

    0Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y
    Originally posted by @William C.:

    I just saw your cost break down. Amazing job with your projections. I'm sure your aware you'll encounter more losing costs at settlement. Transfer tax, etc....I'm guessing that's when you'll pay the taxes? Also, I'm guessing the insurance was $2000. I'm certainly not trying to not pick, but profit is profit. Most of all, good luck with inspections and getting to the closing table. Appraisal and mortgages commitments await.

     Appraisal should go well as there are other homes near by that are 1/2 as updated as mine and they sold in the $180K's and $190K's for similar sq.ft. Cash deal for me so no mortgage payback commitments. Insurance was much less than your quoted $2K.

    0Reply
  • Diane Dono
    Real Estate Agent · San Jose, CA · Member since 2017 · 57 posts · 35 votes
    9y

    Wow, looks beautiful!! Thank you for sharing, inspiring!!

    1Reply
  • William C.
    Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y
    Rodney Marcantel thanks for the clarity. You quoted the insurance at $2k, that's where I got the figure, you just didn't have anything in the "actual" column. Regarding the appraisal....the comps sold for 180-190k with similar sq ft? Yikes. I truly mean it when it say good luck,I hope for the best and that it appraises for what you need. In my experience appraisers don't differentiate from "brand new" like yours, and the comp down the street that was remodeled 10 years ago. Unless its extremely dated, or falling apart, they are both usually a labeled C3 in the eyes of the appraiser and therefore appraise for the same amount. Even if you are a C2 and they are a C3, the adjustment is typically $20k. Your $50k over the nearest comp? There is no adjustment for "new kitchen" or new bath. Its line for line, sq ft, beds, baths, etc, etc....I'm probably wrong and it'll appraise just fine. I'm on your side. I feel if a buyer is willing to pay X, then adjust accordingly and appraise it for X. Unfortunately for me I've been burnt too many times that I never assume it's appraise any higher no matter how much nicer it is compared to the comps.
    1Reply
  • Aaron Cullen
    Real Estate Broker · Portland, OR · Member since 2015 · 201 posts · 98 votes
    9y
    Nice flip! Really like the interior choices, keep it up!
    0Reply
  • Angela Przulj
    Vendor · Melbourne, Victoria · Member since 2016 · 56 posts · 19 votes
    9y
    Amazing and congratulation The house looks stunning. Your hard work paid off well done
    1Reply
  • Shawn Lowery
    Rental Property Investor · Phoenixville, PA · Member since 2015 · 44 posts · 44 votes
    9y

    Nicely done!  Interior looks great.  On to the next!

    1Reply
  • Nathan Collins
    Virginia Beach, VA · Member since 2017 · 2 posts · 0 votes
    9y

    Congrats!

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free