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

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  • Flipper/Rehabber · Roseville, MN · Member since 2018 · 73 posts · 38 votes
    8y
    Wow this is awesome!! I just signed a purchase agreement on my first deal and hope to close in the beginning of August! This makes me really excited!! :)
  • Contractor · Pensacola, FL · Member since 2017 · 322 posts · 157 votes
    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.

     That's great.  If you got close to asking, you guys really pushed those comps.  Blazing trails for the rest of us.  Looking forward to seeing the final figures

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    8y

    Very nice. The back dark patio can use a coat of gray or lighter paint. Too dark color. More flower landscape in front will really accentuate the home.

    Good luck,

    Sam Shueh

    Silicon Valley


  • Petaluma, CA · Member since 2017 · 106 posts · 86 votes
    8y

    Super impressive work here, and very inspirational that this is your first go. You gotta be excited about the direction you are heading. :)

  • Real Estate Investor · Middle Island, NY · Member since 2016 · 147 posts · 68 votes
    8y

    Amazing work. The plank ceiling really adds a nice touch, did you just go right over the popcorn ceiling with it?

  • Specialist · GA · Member since 2019 · 59 posts · 6 votes
    7y

    @Benjamin Ervin...Thank you for sharing your experience and insight regarding this flip. You and your wife did an awesome job and I'm sure it will sell in no time. I appreciate you giving us BP members the extra motivation to forge ahead. Much success to you and your wife on future deals!!!

  • Rental Property Investor · Los Angeles, CA · Member since 2017 · 1 post · 0 votes
    7y

    Wow, very nicely done. Congrats!

  • Investor · Colorado Springs, CO · Member since 2019 · 55 posts · 36 votes
    7y

    Wow, great job! Did you end up getting a full price offer?

  • IN · Member since 2017 · 96 posts · 63 votes
    6y

    @Benjamin Ervin, don't leave us hanging! How did this turn out? Thank you for sharing this—so inspirational!

  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    6y
    Originally posted by @Constancia R.:

    @Benjamin Ervin, don't leave us hanging! How did this turn out? Thank you for sharing this—so inspirational!

    Hi, sorry I didn't realize I never came back to update this!  We ended up selling this property for $165,000.  So we didn't get full asking price, though I think had we waited we may have gotten a little more.  We made the decision that at $165,000 there was plenty of profit and we sold to some people that we know, which makes it an even cooler experience!  They are still loving their home and regularly post pictures on Facebook!  

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