Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
Hey BP,
A few days ago, I closed on the purchase of my first flip opportunity, a single family in Stoughton, MA. I have partnered on a couple BRRR deals within the past year and a half, but this is my first project on my own and I'm very excited to be fully responsible for its outcome.
Some details about the deal:
Purchase Price - 185k Rehab Budget - 115k After Repair Value - 400k
I used hard money to finance this deal as well, but was also able to raise the 20% down with a private lender. Fortunately, now on my third project, I have not had to use any of my own money for these deals to date.
- What is in the Permits & Plans number? It seems a bit high to me.
- I think you can get the roofing price down. I'm guessing you're around 18-20 squares @ $350-$400 = $7,000.
- Are you painting interior & exterior or just interior? I can't tell if the siding is vinyl.
- Is framing under finish carpentry? Any HVAC?
- Insulation may increase if you are gutting exterior walls and if Stoughton has a stretch code. I would check with the inspector on this as you may have to do spray foam.
Just wanted to give you some things to dive a bit deeper in and see if you can save some money/thinking about all aspects.
Brockton, MA · Member since 2017 · 19 posts · 4 votes
9y
Wow awesome!
I'm just getting into REI (educating myself right now) and I'm from the next town over (Brockton).
Cool to see a what local deal looks like.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
9y
@Justin Silverio Thanks Justin! Definitely appreciate the observations from someone so experienced.
- I will look further into this number. I think a majority of it is coming from having an architect involved in the project as we are removing some interior walls.
- I thought this number was a little high as well. Will have to dig into this one.
- I had the quote come in for both as I would really like to paint the interior and exterior. Likely going to revisit this later in the project.
- Framing is under finish carpentry, yes. HVAC I believe is included in the plumbing number, if that then sounds right?
- Appreciate the insight. I definitely want to know about any costs that may come as a surprise.
If anything I said doesn't make sense, feel free to call me out on it!
@Christopher Fernandes Thanks! I'd be more than happy to show you the project sometime! Send me a private message and we can definitely set something up.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
9y
I'm not in that area, but I thought your insulation number seemed low. And if you have to go with spray foam insulation, that could be around three times the price of using fiberglass.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
9y
@Adam Jaspon Fortunately the GC that I am working with has a private lender that he has used in the past so I was able to work with this person. As a result, we are also splitting 5% of the profit as well. Expensive, but was almost unable to do the deal after struggling to raise the money.
Investor from Boise, ID · Member since 2017 · 74 posts · 54 votes
9y
Looks like a good flip. Your painting number seems disproportionately high??? Is there drywall in there too or should I move to MA and paint this house for you for $16k? :)
West Bridgewater, MA · Member since 2017 · 81 posts · 14 votes
9y
congrats @Patrick Wheeler on this flip! I have some questions...How did you find the deal? What hard money lender did you use? Hows it going so far? I'm right around the corner in West Bridgewater!
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
9y
@Tyler Resnick Haha the painting quote included the exterior of the house as well so that should be the reason for the higher number. I am always willing to save $1,000 though!
@John Menton Thanks! I purchased the deal from a couple developers that do bigger projects in the city and I used Boston Property Capital out of Quincy. The project is going pretty well; had a little bit of a delay waiting for the plans from the architect, but my GC assured me they would make up the lost time! Let me know if you ever want to check it out!
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
Project Update
Unfortunately I got away from keeping this project updated, but should be back to providing a more consistent record! We are right around the halfway mark in the project and so far it really has been a pretty smooth ride. The other week we got all the rough work signed off on, so last week began the phase of putting it all back together. I'm a little behind on posting the phases of the project here so I wanted to start with these pictures!
We set such a conservative timeline in the beginning, that we are looking pretty good in regards to our schedule, but there has definitely been areas that I would like to improve upon moving forward.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
@Brian Garrett After paying back both lenders, the target profit is about 32k and that's assuming I can sell it for 400k, which I have my reservations about. You're definitely correct in assuming I overpaid for the property. I was just very eager to get my first fully solo deal under my belt after I was unable to complete a couple previous deals with some partners.
My next deal, which is under contract currently, has a much much higher target profit and sticks to the 70% rule. At the end of the day, I'm just looking at this deal as my education.
@Brian Garrett After paying back both lenders, the target profit is about 32k and that's assuming I can sell it for 400k, which I have my reservations about. You're definitely correct in assuming I overpaid for the property. I was just very eager to get my first fully solo deal under my belt after I was unable to complete a couple previous deals with some partners.
My next deal, which is under contract currently, has a much much higher target profit and sticks to the 70% rule. At the end of the day, I'm just looking at this deal as my education.
Keep trucking along and let us know how it turns out! There's no better way to learn than first hand experience.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
Project Update
Lot of change over the last week and this is probably my favorite part of the project. We should be about 2-3 weeks away from finishing so it's time to start marketing the property!
Willowbrook, IL · Member since 2017 · 24 posts · 3 votes
8y
Hey I'm looking for my first deal as well. And I wanna do it with nun of my own money. I come from a non wealthy so I can't ask my parents. So I'm looking for someone to become my mentor.
Rental Property Investor · Somerville, MA · Member since 2011 · 101 posts · 19 votes
8y
@Patrick Wheeler Amazing stuff Patrick. I really appreciate the detailed reno cost breakdown as well as the photo. Until this summer, I was living in Boston, so I am following this thread with great interest.
I have not done a flip yet. Renovated and rented my condo down in Newport RI. It took a lot of time and effort.
How much time do you spend on this project on a weekly basis (both on and offsite)?