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.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
@Jahan Habib Since I partnered with my GC on this deal, I spend maybe 30 minutes a week on this deal. I usually stop by on the weekends to check in on the progress and take pictures for documentation. It's definitely a fortunate situation, but since I work full time right now, I have intentionally structured it this way.
Rental Property Investor · Somerville, MA · Member since 2011 · 101 posts · 19 votes
8y
@Patrick Wheeler That's great. You have a great situation right now. My biggest deterrent for flipping houses is the time require. It looks like you have been able to deal with this matter very nicely.
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
Project Update
Little late with this post, but we have finished renovations and the property is currently on the market. Had a good turnout with open houses, but only received two offers. Here are some pictures of the finished product. What do you all think!?
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
8y
@Patrick Wheeler looks great! I see you have it listed below your target. Was this to try and get multiple offers and drive the price up, or did the market change a bit? How did you do on the budget? Have the offers been decent?
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
@Brian Pulaski Thanks! Yes, the idea was to create a multiple offer situation, which didn't really occur unfortunately. I was able to negotiate one of the offers to over asking, but still pretty short of our target. The other offer was extremely weak. We at least did very well with the budget, ended up right around where we projected. Still waiting on final draw from lender and need to see how much left my GC needs. Should ultimately be right on or come in a little under.
Flipper/Rehabber · Montgomery, NY · Member since 2016 · 2k+ posts · 1k+ votes
8y
That's great to hear about the budget. I have heard the "list it low" and generate multiple offers up to where the house should sell for. Is this a strategy you use on other sales? Hopefully everything works out well for you in the end, and you get into the next flip (assuming you plan to do more) soon.
Natick, MA · Member since 2013 · 86 posts · 47 votes
8y
@Patrick Wheeler this looks great, awesome job, you should be proud!
I think you priced it well to elicit over asking offers, curious what sort of feedback you were receiving from Buyers/Agents...It's a great reno with great finishes, it shows really well and the room count / general flow would appear to be desirable (3 beds upstairs, bathroom on both floors, extra room for an office etc), is there anything that Buyers were saying that would explain why it didnt go for more initially? Was it maybe location that played a factor? Or maybe the Winter market?
On a side note, I noticed the MLS listing says 6 total rooms, but with the Office you may want to consider marketing it as 7 total rooms?
Great job, congrats on the successful project and Good Luck with the next one!
Real Estate Agent · Boston, MA · Member since 2015 · 319 posts · 80 votes
8y
@Brian Pulaski This was my first flip deal so I'll have to consider using the same strategy again. I have an agent selling my next flip, which I just started and it should be completed right around the beginning of spring so hopefully the strategy will work better this time around.
@Nick Foundas I definitely could have done a better job at seeking out feedback as I didn't receive all the much to begin with. Most people really liked the home, but did not offer many specifics. One thing that definitely hurt us was installing electric baseboard upstairs in the bedrooms and bath (don't ask me why, it was a surprise to me and my fault for not talking that through with my GC lol). I think the winter market was a factor as well. Had a ton of traffic, but few offers.
Good call on the total room count, definitely missed that..lol
Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes
8y
Wow! Good job!!! The house is beautiful!!! I hope you get a good offer soon! Is there anything you learned from this specific project that you would advise to a newbie like me that is looking to do a first flip?