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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Most Popular Reply

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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  • Marble Falls, TX · Member since 2018 · 36 posts · 18 votes
    8y
    Congratulations! It looks great 👍🏻
  • Fort Smith, AR · Member since 2017 · 2 posts · 2 votes
    8y
    congratulations...thank you
  • Schenectady, NY · Member since 2018 · 3 posts · 2 votes
    8y
    The tile in the bathroom is crazy! Love it.
  • Realtor · Baton Rouge, LA · Member since 2017 · 45 posts · 8 votes
    8y

    Nice!!!!

  • Lexington, SC · Member since 2018 · 20 posts · 10 votes
    8y
    Congrats Benjamin! Very impressive for your first flip. I’m jealous of the fact that you’re in a position to pay cash. Definitely something for me to aspire to!
  • Phoenix, AZ · Member since 2017 · 11 posts · 1 vote
    8y
    Great job Ben.
  • Lender · Nashville, TN · Member since 2017 · 205 posts · 107 votes
    8y

    Great job @Benjamin Ervin! The place looks awesome. 

  • Rental Property Investor · West Palm Beach, FL · Member since 2018 · 1 post · 0 votes
    8y
    Amazing job 💪🏽
  • Rental Property Investor · San Francisco, CA · Member since 2017 · 207 posts · 138 votes
    8y
    Congratulations! I am doing my first flip from Out of state. How was your experience with your contractor? Did you do any work yourself?
  • Greater Hartford, CT · Member since 2018 · 15 posts · 10 votes
    8y
    Ben - your photos look like the belong on HGTV. Awesome job! Congrats on your first flip, can’t wait to get there one day!
  • Member since 2018 · 2 posts · 1 vote
    8y

    Beautiful Job Congratulations!!!

  • Real Estate Agent · Augusta, GA · Member since 2018 · 7 posts · 3 votes
    8y
    Looks great! Way to go!
  • Rental Property Investor · Reston, VA · Member since 2016 · 41 posts · 13 votes
    8y

    looks great, congrats 

  • Wholesaler · Hampton Roads, VA · Member since 2017 · 75 posts · 25 votes
    8y

    Well done man! I especially like the bathroom finishes! Thanks for sharing.

  • Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
    8y
    Dang! Awesome job. Smart design plans on your Reno for $41K. Thanks for sharing !
  • Rental Property Investor · Philadelphia, PA · Member since 2015 · 44 posts · 28 votes
    8y
    Congrats looks great! Love the windows
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y

    Too many folks to thank individually, but thank you all for your kind words and support!

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

    Congratulations! I am doing my first flip from Out of state. How was your experience with your contractor? Did you do any work yourself?

     Hi, Angela. Personally, I wouldn't have the confidence to do a flip out of state yet, but seeing that you are from SF, CA, I understand why you need to.  My wife and I did a lot of work ourselves and we had excellent experiences with all the contractors we used.   I dont expect that this is the norm for everyone, though.  Having managed contractors in a previous line of work, I knew a few things to look out for, and had an idea of folks I wanted to use going in. 

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

    Congrats Benjamin! Very impressive for your first flip. I’m jealous of the fact that you’re in a position to pay cash. Definitely something for me to aspire to!

     Thanks, David! You will get there.  I come from a family who knows nothing about real estate and I didn't use my own money.  My wife and I have gotten off the ground through hustle and self-education.  Continue to let everyone know what you want to do and sell yourself to them.  Stay persistent and prove you know what you're talking about.  If you actually know your stuff, someone will bet on you. Good luck!

  • Investor · Washington D.C. · Member since 2010 · 48 posts · 21 votes
    8y

    Very nice, thanks for sharing! 

  • Real Estate Investor · Austin, TX · Member since 2016 · 20 posts · 10 votes
    8y
    You guys made some great choices! Did you paint the window trim? It looks like it went from the standard aluminum color to a black. Did you paint or replace the windows? It looks really cool.
  • Kansas City, MO · Member since 2018 · 8 posts · 1 vote
    8y

    Wow, nice job! !  Congrats!

  • Investor · Venice, CA · Member since 2016 · 163 posts · 49 votes
    8y
    Amazing job!
  • Knoxville, TN · Member since 2018 · 24 posts · 5 votes
    8y

    Congrats! Well done sir!

  • Tarzana, CA · Member since 2018 · 16 posts · 6 votes
    8y

    Ben,

    Whoa!  That is amazing. Looks great. I am brand new to BP and - like you did -  reading lots of books to learn as much as I can.  I am in Los Angeles.  I hope to do my first deal this year ... once I feel comfortable enough with all the knowledge I am ingesting.  Thank you for your post. I find it extremely helpful.  


    Best,

    Stephen 

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