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 · Bushnell, FL · Member since 2016 · 456 posts · 224 votes
    8y

    Great job .. everything looks great .. only thing that stuck out to me was the front posts .. painting them instead of leaving them natural wood ..but hey ..that’s just my humble opinion .. and I’m a picky one so if that’s the only thing I can play devils advocate with .. then that’s saying something .. plus .. everyone has there own take on what looks good to them .. I would say your hitting on all 8 Clyinders though .. 

    I will continue to wish you and your talented wife the very best .. 

    God Speed , 

    Michael S .. 

  • Flipper/Rehabber · Cookeville, TN · Member since 2018 · 41 posts · 13 votes
    8y

    Nice!

  • Flipper/Rehabber · Cookeville, TN · Member since 2018 · 41 posts · 13 votes
    8y

    Super nice job! Really like those floors. Grats!

    Are you going to stage it?

  • Real Estate Agent · Pensacola, FL · Member since 2014 · 379 posts · 307 votes
    8y

    Fantastic Job!  What part of Pensacola is it located and when is it going active on the market?  

  • Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    8y

    @Benjamin Ervin Congrats and great job on the rehab! Thank you for breaking down the numbers.

    One thing to consider is the roof. I'm a rehabber in the area as well and and a lot of buyers we get are first time home buyers who may have less than $1k in the bank. The thought of having to replace a $7-8k roof to them is huge. Most of them will ask for a new dimensional shingle roof. And you may lose some lookers because they see the roof is old in the pics. I've got a great roofer if you want a referral just message me.

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

    This looks fantastic! I, too, was blown away with what you accomplished for only $40k. Very inspirational!

  • Specialist · North Hollywood · Member since 2017 · 71 posts · 19 votes
    8y
    Loved how the butcher block counter top goes with the floor!
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    8y

    Very nice job. Good choice of materials and finishes. A clear winner! Congrats!

  • Tacoma, WA · Member since 2018 · 30 posts · 16 votes
    8y

    Looks good enough for HGTV! :)

  • Asbury, NJ · Member since 2018 · 11 posts · 3 votes
    8y

    Congrats. Your story is very motivating as, I too am just starting in the REI game. Very nice design on the house. You shouldn't have any issue selling it quick.

    Good luck with your future endeavors

  • Rental Property Investor · Raleigh, NC · Member since 2015 · 27 posts · 6 votes
    8y

    Great Job ! @Benjamin Ervin

  • Rental Property Investor · Glen Mills, PA · Member since 2012 · 87 posts · 56 votes
    8y

    Looks Great!! 

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

    Great job .. everything looks great .. only thing that stuck out to me was the front posts .. painting them instead of leaving them natural wood ..but hey ..that’s just my humble opinion .. and I’m a picky one so if that’s the only thing I can play devils advocate with .. then that’s saying something .. plus .. everyone has there own take on what looks good to them .. I would say your hitting on all 8 Clyinders though .. 

    I will continue to wish you and your talented wife the very best .. 

    God Speed , 

    Hey, Michael thank you for the input.  Pensacola seems to be the hub of the Chip and Joanna Gaines fan club.  We've actually gotten some pretty good feedback from the columns and that people just like wood accents in general. I appreciate your kind words and wishes!

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

    Super nice job! Really like those floors. Grats!

    Are you going to stage it?

     Thanks, Robert!  My wife opted to go with a "mini stage" approach you can see in the photos with just a few accent pieces.  We'd love to stage it but we had a specific amount of funding to work with on this and we are hoping it will still sell quickly!

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

    Fantastic Job!  What part of Pensacola is it located and when is it going active on the market?  

     Thank you, Matt! It is active now (listed yesterday) and we've had several showings.  Hopefully one is a buyer! I'd post the link, but I think that may be against the rules since this isn't the marketplace forum. Its in the 32514 zip near Scenic Highway.  

  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Originally posted by @Arianne L.:

    @Benjamin Ervin Congrats and great job on the rehab! Thank you for breaking down the numbers.

    One thing to consider is the roof. I'm a rehabber in the area as well and and a lot of buyers we get are first time home buyers who may have less than $1k in the bank. The thought of having to replace a $7-8k roof to them is huge. Most of them will ask for a new dimensional shingle roof. And you may lose some lookers because they see the roof is old in the pics. I've got a great roofer if you want a referral just message me.

     Hi Arianne, thank you for the input!  The roof was replaced after Ivan and actually looks much better in person.  But I couldn't agree more with your opinion. 

  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    @Katie Hendrixson, Anssi Viljanen , Bjorn Ahlblad , @Tess Robinson, @mario garaffa, Michael Cavitolo , @terrell Hill, Thank you all!
  • Rental Property Investor · Cleveland, TN · Member since 2015 · 176 posts · 58 votes
    8y

    What an awesome job @Benjamin Ervin. Looks fantastic.

  • Flipper/Rehabber · Richmond, VA · Member since 2018 · 4 posts · 2 votes
    8y
    Congratulations to you? I am looking at a property I want to put an offer in for and going through the numbers. You are definitely motivation. Congratulations 🎉🎈
  • Flipper/Rehabber · Highlands County · Member since 2017 · 87 posts · 33 votes
    8y

    Congratulations! It looks really nice. 

  • Flipper/Rehabber · Highlands County · Member since 2017 · 87 posts · 33 votes
    8y

    Question: did you place any insurance in this property during the remodeling phase? Do I need insurance in my property during the flipping process?

  • Nicola FraserPro Member
    Rental Property Investor · Charlotte, NC · Member since 2018 · 15 posts · 6 votes
    8y
    Nice work. Place looks great.
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Keith Weigand , thank you!
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Sharon Butler thank you and good luck! Whether you get the property or not doesn’t matter! Stay persistent and do good analysis and you’ll take one down soon!
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    @Luz Pagan, thank you! I have only done one deal to this point, but I can tell you I absolutely slept well at night knowing the property was insured. There are very inexpensive policies available for non-occupied properties and I would strongly recommend leveraging that.
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