My First Flip! With Numbers and Photos!

My First Flip! With Numbers and Photos!

Pensacola, FL · Member since 2017 · 163 posts · 312 votes

I realize I do not have a ton of posts here on Bigger Pockets, but I can’t emphasize enough the impact BP has had on me in a short time.  In the interest of community and sharing success stories with others that might be looking for some motivation, I wanted to detail my start in RE.  I’ll try not to be too lengthy, but I think people can identify with these stories a little better when there is some personal context.

My name is Ben Ervin and I am a Program Analyst for the Naval Education and Training Command in Pensacola, FL.  I enjoy knowing what I do is impactful and supports the Sailors that serve our country.  But, I have always had an attraction to the idea of entrepreneurship.  I’ve known since I was 13 years old that I wanted to be my own boss one day.  Yesterday marked a big step towards that goal when my wife and I listed our first flip property on the market.

In October of 2017 I decided to stop thinking about flipping houses and start educating myself on how to get in the game.  I found that a friend of mine, @Nick Armstrong, was flipping houses and got a chance to talk shop with him a bit and he directed me here to BP.  From that point, it took me 4 months to close on our first deal.  It hasn’t sold yet, but we are in a hot market right now where I believe data supports a high demand for the product we are offering.  Beyond all of that, the really invaluable part of this experience has been education.  I have learned A TON.  We certainly made mistakes along the way, but I can take those lessons learned and leverage them going forward.  I intend to use this first deal as a launching pad to doing more deals, including additional flips in the near term with the goal of building a rental portfolio for long term passive income.

Now I will stop rambling and show you what we’ve done.  The house has not sold yet, but assuming full price offer, here is the breakdown by the numbers along with (everyone’s favorite part) photos.

Projected Numbers:

Acquisition Costs (AC): $70,635.50

- Purchase Price: $70,000

- Closing Costs: $510

- Termite Letter: $125

Rehab Costs (RC): $41,185

- Materials: $21,780

- Labor: $19,405

Holding Costs (HC): $870

- Utilities: $450

- Insurance: $420

Selling Costs (HC) *Assuming Sales Price (SP) of $175k*: $10,500

- Commissions to Agents: $10,500

Projected Profit: $51,810 – Taxes & Any Additional Selling Costs

- $175,000(SP) - $10,500(SC) - $870(HC) - $41,185(RC) - $70,635(AC) = $51,810

Now on to the photos...

Exterior Before:

Exterior After:

Interior Before:

Interior After:

I still have a ton to learn, but I look forward to trying to answer any questions you might have. Furthermore, if anyone here in my local market wants to just say hello, I invite you to do so. I hope to be more involved in the BP and larger REI community as a whole going forward.

Thanks for listening/checking out my progress so far and good luck to all!

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James MasottiPro Member
Rental Property Investor · Washington Township, NJ · Member since 2015 · 1k+ posts · 976 votes
8y

@Benjamin Ervin - Can you share the scope of work? Looks like you got a lot of work done for $41k...either that or my construction cost are really just that much more expensive up here in the Northeast

See this reply in the discussion

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  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Originally posted by @Harry Copeland:

    congratulations sailer, i was stationed there many years ago as a master Sargent

    good job on the house, i hope you put some of your buddies to work to keep them out of trouble

     Hey, Harry - thank you.  To be clear, I've never served in the military.  I work as a government contractor for the Navy.  While I do think what I do has a positive impact in supporting our Sailors, I would never take any credit from those to which it is truly owed.

  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Originally posted by @Mark Nickoson:

    Was that a load bearing wall you took out in the kitchen?

     Mark, we assumed it was when we bought the house.  We actually had an architect come out to check on the wall before we started the project so he could draw up the plans for how to remove and replace with proper structural support.  Interestingly enough, the way this particular house was built with trusses, it was constructed to move all of the load to the exterior walls.  So in theory, you could remove every interior wall in this house and live in one big box if you wanted!  We saved quite a bit on our original budget thanks to this.

  • Springville, UT · Member since 2017 · 11 posts · 4 votes
    8y
    Ben this is awesome! Keep up the great work!
  • Investor · Lake County, OH · Member since 2016 · 124 posts · 55 votes
    8y

    Very nice!

  • Flipper/Rehabber · Norcross, GA · Member since 2018 · 19 posts · 7 votes
    8y
    Congratulations!
  • Investor · Collegeville, PA · Member since 2012 · 2 posts · 2 votes
    8y

    Beautiful work! Congrats on the 1st one!

  • Atlanta · Member since 2018 · 4 posts · 2 votes
    8y

    Awesome flip! I'm sure you'll get a buyer soon. 

  • Real Estate Agent · Brentwood, CA · Member since 2018 · 285 posts · 225 votes
    8y

    Awesome job!  I know it can be stressful, but isn't it fun?!?!

  • Port Saint Lucie, FL · Member since 2018 · 1 post · 1 vote
    8y

    wow..wow.. that looks so nice...man you did a great job..keep up the good work,, I am just starting wholesaling myself, just sent out my first contract last night hoping it will be accepted after buyer sees the condition of the house, but  I'm learning and working at the same time,, EXCITED...thank you

    ...So I will need a lot of help but I am open to learning the ropes.

  • Saint Louis, MO · Member since 2018 · 1 post · 0 votes
    8y

    I grew up in Pensacola and lived there the first 18 years of my life so this was a fun thread to read. Any idea on the impact of the Navy Federal Credit Union HQ on the local market @Benjamin Ervin? 

  • Lake Charles, LA · Member since 2018 · 1 post · 0 votes
    8y
    Nice job! How long did you take from Acquisition date until posting for sale date? And can you elaborate on all the repairs you did and how you came up with what to repairs? Thanks!
  • Specialist · Sonora, CA · Member since 2017 · 22 posts · 7 votes
    8y

    Nice job and thanks for sharing

  • Riverside, CA · Member since 2018 · 19 posts · 3 votes
    8y
    Very nice!
  • Brandon, FL · Member since 2018 · 1 post · 0 votes
    8y
    You should be very proud of yourself! Great job! I live in Brandon,FL let’s connect 😊
  • Lender · Spring, TX · Member since 2015 · 3 posts · 1 vote
    8y
    Great job! Very inspirational as I am looking to do my first deal. keep up the good work!
  • Real Estate Agent · Memphis, TN · Member since 2016 · 6 posts · 2 votes
    8y

    Great job! Beautiful workmanship. 

  • Member since 2018 · 2 posts · 1 vote
    8y

    Wow, great looking project and numbers! Thanks for sharing the details. You did a ton for your budget. Impressive!

  • Rental Property Investor · Dayton, OH · Member since 2015 · 79 posts · 85 votes
    8y
    Sweeeet.

    Originally posted by @Benjamin Ervin:
    Originally posted by @Mark Nickoson:

    Was that a load bearing wall you took out in the kitchen?

     Mark, we assumed it was when we bought the house.  We actually had an architect come out to check on the wall before we started the project so he could draw up the plans for how to remove and replace with proper structural support.  Interestingly enough, the way this particular house was built with trusses, it was constructed to move all of the load to the exterior walls.  So in theory, you could remove every interior wall in this house and live in one big box if you wanted!  We saved quite a bit on our original budget thanks to this.

  • Real Estate Agent · Los Angeles, CA · Member since 2015 · 9 posts · 3 votes
    8y

    SEXY!!

  • Property Manager · Jacksonville, FL · Member since 2018 · 514 posts · 470 votes
    8y
    The house looks amazing! Hoping to post my first flip at some point!! Congratulations :)
  • Real Estate Agent · Portland, OR · Member since 2013 · 85 posts · 37 votes
    8y

    Very nice work!  Congrats!!

  • Investor · White Haven PA · Member since 2014 · 363 posts · 221 votes
    8y

    Bathrooms look great.. Nice tile choices.. Laminate floors are nice but really need to be laid in a staggered pattern.. 

  • West Palm Beach, FL · Member since 2017 · 91 posts · 19 votes
    8y

    Looks great! I’m sure your asking price. 

  • Real Estate Broker · Medford, OR · Member since 2018 · 61 posts · 34 votes
    8y
    Such an amazing flip! It’s beautiful. Thank you for posting this. I have not done my first flip yet, but this is a great inspiration and motivation to keep me going.
  • Palpark, NJ · Member since 2016 · 69 posts · 11 votes
    8y

    @Benjamin Ervin congrats on your 1st flip and a success at that!

    I'm working to get my 1st one under my belt soon (close next month) but there is a lot of work that needs to be done. How did you organize and plan your rehab? Also, your rehab looks amazing. How did you keep the rehab budget so low? What type of rehab was this?

    Thanks

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