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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  • Investor · Indianapolis, IN · Member since 2017 · 62 posts · 38 votes
    8y
    Congratulations great job! Has to feel good!
  • Rental Property Investor · Metairie, LA · Member since 2015 · 30 posts · 5 votes
    8y

    this is awesome!!!

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

    Awesome job!! Thanks for sharing.

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

    Great Job.  Congratulations on taking action. Very Inspiring. 

  • Investor · Charleston, SC · Member since 2017 · 21 posts · 7 votes
    8y
    Originally posted by @Benjamin Ervin:

     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.

    That's sweet!

  • Pasadena, MD · Member since 2018 · 8 posts · 2 votes
    8y
    Congratulations Ben! You and your wife did an AWESOME job on the rehab! 😊
  • Toronto, Ontario · Member since 2018 · 1 post · 1 vote
    8y
    Thank you for sharing your story and project. I really love what you’ve done with the place and I hope it’ll sell well. Please keep us posted on the selling process and what if does sell for.
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Originally posted by @Travis Hornsby:

    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? 

     Hey, Travis.  Pensacola is definitely an awesome place.  Navy Fed has had a big impact on the housing market in the surrounding areas (northern end on 32526 in particular).  The real benefit Pensacola has seen from NF setting up shop here is the number of jobs it has provided.  It adds some more diversity to the employment sources here.  

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

    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!

     Sinh, thank you! We closed on February 15th of this year and are now in discussion with three interested parties (one which has offered and we have countered), so we hope to have it under contract very soon.

    I could really write an entire blog post on the rehab front.  It was such an incredible learning experience and there are just too many details to outline here.  But I can tell you, in retrospect, the only item we didn't address that I wish we had was replacing the hot water heater.  It still functions fine, but I am sure it is pretty close to the end of its lifecycle.  I am considering a credit at closing to the buyer to have it replaced to throw in as a sweetner.  Just one of many lessons learned.

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

    @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

    John, not sure what you're asking exactly when you say, "what type of rehab was this", but we kept the budget low with a lot of sweat equity. I would have loved to do some more landscaping, maybe build a carport, etc. But realizing the surrounding area, we used the money where we believe it made sense from an ARV/re-sale perspective. It was important for us to keep a clear mind and make rehab determinations based on reason rather than emotion.

    And frankly, we did what we could with the liquid funds we had available.  It's amazing what you can accomplish when you give yourself definitive budget parameters.  You just find a way to make it happen.  Similar to Parkinson's Law, if you're familiar.  In our case, it meant some late nights, massive commitment and YouTube videos to teach ourselves how to do things.

    As it pertains to preparation, if you already have a property under contract, you should already be underway with that process.  I use a simple spreadsheet that I modified based on the one @J Scott built.  If you haven't read J's Book on Flipping Houses, I highly suggest you do so.  But you need to be doing your due diligence NOW.

  • Rental Property Investor · Thibodaux, LA · Member since 2016 · 9 posts · 5 votes
    8y

    Absolutely awesome flip Ben!

  • Real Estate Agent · Ft. Worth, TX · Member since 2016 · 10 posts · 5 votes
    8y

    Awesome job and congratulations Benjamin!  I really like that bathroom finish-out.

  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    8y

    Great job, congrats Benjamin!

  • Investor · Paso Robles, CA · Member since 2016 · 106 posts · 31 votes
    8y
    Amaaaaaazing job! You both really did a great job!
  • Canton, OH · Member since 2018 · 118 posts · 63 votes
    8y

    Great job.  Love the twinkly lights everywhere, and that bathroom floor is stunning.  I love looking at pics, I hope you get what you deserve out of it because I know how much work they are when you do the work yourself!  Isn't it a great feeling to list it?  I love driving by one we have rehabbed and knowing that we did that!  However, I'm getting old so my next one will involve a lot of professional contractors.  :-)

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

    Looks GREAT !

  • Investor · walnut creek, CA · Member since 2016 · 16 posts · 10 votes
    8y

    Well Done @Benjamin Ervin ! Super impressed with the quality of the job on that budget. I think you and your wife have a future here :) 

    Best of luck going forward!

    Peter  

  • Flipper/Rehabber · Ogden, UT · Member since 2018 · 12 posts · 3 votes
    8y
    Thats a beautiful job. Good work.
  • Real Estate Agent · San Luis Obispo, CA · Member since 2018 · 79 posts · 39 votes
    8y

    nice, very impressive!

  • Rental Property Investor · Gulf Breeze, FL · Member since 2014 · 1k+ posts · 733 votes
    8y

    congrats @Benjamin Ervin!!

  • Rental Property Investor · Miami, FL · Member since 2017 · 3 posts · 1 vote
    8y

    @Benjamin Ervin Did you get into contract? Did your game plan change?

  • Developer · Bowie, MD · Member since 2017 · 110 posts · 22 votes
    8y
    Nice jobs! Congrats!
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Originally posted by @Yehuda Smith:

    @Benjamin Ervin Did you get into contract? Did your game plan change?

    Yehuda, yes we are under contract slated to close on the 13th of August.  We are still in the contingency period, though.  I will be happy to share final details after we close.

  • Rental Property Investor · Miami, FL · Member since 2017 · 3 posts · 1 vote
    8y
    Originally posted by @Benjamin Ervin:
    Originally posted by @Yehuda Smith:

    @Benjamin Ervin Did you get into contract? Did your game plan change?

    Yehuda, yes we are under contract slated to close on the 13th of August.  We are still in the contingency period, though.  I will be happy to share final details after we close.

     I hope it goes smooth!

  • Raleigh, NC · Member since 2014 · 17 posts · 5 votes
    8y

    @Benjamin Ervin Great job!! Looks amazing!  Thanks for sharing!

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