$50K Flip Property Success

Real Estate Deal Analysis & Advice
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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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  • Tomi Osibodu
    Real Estate Investor · San Diego, CA · Member since 2017 · 13 posts · 0 votes
    9y

    Thanks a lot guys for the great info.

    0Reply
  • Yanis P.
    Steger, IL · Member since 2016 · 57 posts · 13 votes
    9y

    Nicely done, what I personally would do is to add more light to the house interior

    0Reply
  • Ozzy SirimsiBusiness Member
    Real Estate Agent · Baltimore, MD · Member since 2016 · 1k+ posts · 782 votes
    9y

    Nice job, it looks great, and you deserved every penny

    1Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    Hey @Scott W., check out the Zestimate on the house. It means the $230,500 sale price is right on target as Zillow's estimates are usually a bit low these days. Just thought it was interesting. Appraisal will happen next week after the buyers resubmit FHA paperwork on day 91 (May 26) of my ownership.

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

    Nicely done, what I personally would do is to add more light to the house interior

     Interesting since I added 4 can lights in the hallway and entrance that didn't have but one wall sconce. Only other place I would have added light is in the pantry I created. But there's an outlet in there so the new buyers can add a light if they want. It just sold so fast that I didn't think adding one was necessary unless the buyers requested one.

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

    Nice work, Rodney!  Glad Rehab Valuator helped you find the deal!  We're adding more and more deals there every day

     Thank you, @Daniil Kleyman. Love Rehab Valuator! Really great software.

    2Reply
  • Lynn Weber
    Residential Real Estate Agent · Fort Worth, TX · Member since 2014 · 10 posts · 14 votes
    9y

    Just as an FYI, Zillow is not very accurate in TX since it's a non-disclosure state. Since they base their Zestimates on sold prices, and they don't know them in TX, well, it makes it hard. I did a CMA on the property and I showed that everything in the neighborhood over the last three months has averaged $113.85/sq ft, and yours is listed at $142.13/sq ft. The only one even close was $134.97/sq ft (also completely rehabbed, but smaller at 1304 sq ft) and sold for $177K. Even using the $134.97/sq ft, you are only looking at $212,712. I'm very curious what the appraiser will come up with since we've been having a lot of issues with homes meeting value after multiple offers drive the prices up. Good luck!

    0Reply
  • Frank Contreras
    El Paso, TX · Member since 2017 · 19 posts · 3 votes
    9y

    This is so cool! Thanks for posting this, would love to have a mentor like you!

    0Reply
  • Scarlett Mulligan
    Clarksville, TN · Member since 2016 · 10 posts · 4 votes
    9y

    Love seeing such a success story ...... Congratulations!

    0Reply
  • Robin Boyer
    Surveyor · Hemet, CA · Member since 2015 · 797 posts · 112 votes
    9y

       @Rodney Marcantel amazing work. Maybe you could be s mentor for some of us. I have a few questions if I can maybe pay you for a half hour advice or something I know your a busy person. Getting ready to do some big real estate moves and I am going deep with just bigger pockets information witch is good! 

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

       @Rodney Marcantel amazing work. Maybe you could be s mentor for some of us. I have a few questions if I can maybe pay you for a half hour advice or something I know your a busy person. Getting ready to do some big real estate moves and I am going deep with just bigger pockets information witch is good! 

     Like the idea of getting paid for my time. :-)

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

    Back on the market. 90 days of ownership and the FHA buyers didn't qualify according to their agent. Not sure if I believe that but it is what it is.

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

    One day later (Saturday), accepted second offer. Full price ($229,900) and closing in about 2 weeks. Qualified FHA buyers. God is good.

    1Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    Well, once again an FHA buyer has failed to qualify and the house is back on the market. They didn't qualify after we received a qualification letter because a foreclosure from 2011 wasn't cleared until 2014. That's less than 3 years that FHA allows for clearing on their requirements.

    Back on the market. Would love to find a conventional buyer this time.

    0Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    Good rehab job. How much would be your gain if you contract out all of it and use a full service realtor?

    Thanks

    Sam Shueh

    Silicon Valley, CA

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

    Good rehab job. How much would be your gain if you contract out all of it and use a full service realtor?

    Thanks

    Sam Shueh

    Silicon Valley, CA

     Well, add about $15K in labor over what I did and cut time down about 2 weeks from 69 days of rehab (which equates to about $100 savings in carrying costs since I purchased with cash) That's $50K - $14,900 = $35,100 profit. Oh and add in another 2% to sell over what I'm paying with Listing Spark and that profit drops to just over $25K profit. Does that answer your question?

    0Reply
  • Sam Shueh
    Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    9y

    Still worthwhile project. Congratulations.

    Sam

    0Reply
  • Alejandro Riera
    Contractor · Texas, IN · Member since 2016 · 29 posts · 12 votes
    9y

    Excellent work, Rodney!

    Patience will reward you.

    Thanks for sharing.

    Keep the good work!

    0Reply
  • Michael Plante
    Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Rodney Marcantel:

    Well, once again an FHA buyer has failed to qualify and the house is back on the market. They didn't qualify after we received a qualification letter because a foreclosure from 2011 wasn't cleared until 2014. That's less than 3 years that FHA allows for clearing on their requirements.

    Back on the market. Would love to find a conventional buyer this time.

     Update?

    Strange zestimate went down 40k in 2 months 

    1Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    Sold after negotiating to a 5th buyer for $207,500. Making $25K profit. Half of what I thought I would make. From purchase to sale was just under 6 months as the 5th buyer had to sell their existing house that took an extra month. But I made 13% profit on my money over 6 months or 26% annualized. Not bad for really only 69 days of my work.

    2Reply
  • Rodney Marcantel
    OP
    Coppell, TX · Member since 2014 · 188 posts · 125 votes
    9y

    Just an update. Purchased my next property (3rd flip this year) in an adjacent neighborhood built in 1998. Newer home from this one I flipped that was built in 1980. It's a 2 story 1453 sq.ft. home with 2 1/2 baths and large master suite and on-suite. Water damage from a previous hail storm that was never rectified but other than that, really good. Looking to make around $30K on this one. Expect 6 weeks reno. Numbers: Purchase cash for 160K, financing some of the reno cost, $40K rehab, list for $240K, profit $30K. Inventories here are very low and houses are very low days on market.

    0Reply
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