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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  • Property Manager · Henderson, NV · Member since 2018 · 501 posts · 317 votes
    8y

    I like the IKEA cabinet in the second bath.  My wife and used a similar one in our last Vegas flip.  They are so much more functional than the regular door vanities.  

  • Winamac, IN · Member since 2018 · 8 posts · 2 votes
    8y

    Very nice..i really like the interior choices...especially the bathrooms!

  • Rental Property Investor · Aptos, CA · Member since 2018 · 3 posts · 0 votes
    8y

    That's great! Congrats!

  • Rental Property Investor · Milford, NJ · Member since 2017 · 9 posts · 1 vote
    8y
    Great job in that flip!
  • Realtor · Loma Linda, CA · Member since 2018 · 3 posts · 0 votes
    8y

    Wow!  Great job!  Thanks for posting the numbers and sharing your story.  I'm a newbie to the investing side of RE and am inspired by your post.

  • Real Estate Broker · Marysville, WA · Member since 2013 · 28 posts · 8 votes
    8y
    Hello Benjamin, nice post. did your labor cost include you and your wife or is it strictly contractor? I didnt see the time line of the project or I might have missed it. what was your original time line compared to actual? Great rehab job. Thank you for sharing. Bill
  • Real Estate Agent · Estero, FL · Member since 2016 · 1 post · 0 votes
    8y
    Amazing!!!
  • Bakersfield, CA · Member since 2018 · 11 posts · 4 votes
    8y
    Wow! Amazing job! This is truly inspiring. Posts like these keep me motivated and hungry to learn. Thank you for sharing.
  • Phillip LanierPro Member
    Uvalde, TX · Member since 2016 · 141 posts · 45 votes
    8y

    Great Job!  The rehab is awesome and the numbers are awesome!  Congratulations!

  • collinsville Illinois · Member since 2018 · 1 post · 0 votes
    8y

    Great Job! I really like the style. But to be honest, I really don't know how you did that level of rehab for 41K,? even doing the work your self. But none the less, great job!

  • Attorney · Chicago, IL · Member since 2016 · 4 posts · 6 votes
    8y

    This is incredible!  Great job! I love the bathroom fixtures.  

  • Rental Property Investor · Washougal, WA · Member since 2015 · 82 posts · 18 votes
    8y

    Nice.   what did you use on the ceiling in bathroom and living area? 

  • Ontario, CA · Member since 2016 · 7 posts · 4 votes
    8y
    great work for your first project ben! dont stop keep going
  • Contractor · Member since 2018 · 7 posts · 1 vote
    8y

    thats some really nice construction.  how log did the rehab process take?

  • Investor · Holderness, NH · Member since 2016 · 19 posts · 30 votes
    8y

    Looks great!  Best wishes for a quick sale. Many more to come for you guys!

  • Phenix City, AL · Member since 2018 · 4 posts · 4 votes
    8y

    This is awesome. Well done, and beautiful remodel.

  • Property Manager · Richmond, VA · Member since 2018 · 12 posts · 3 votes
    8y
    This is wonderful!! You did a great job! And it quickly gave me a run down of the flipping process with number. Thanks.
  • Lender · Dallas, TX · Member since 2018 · 22 posts · 8 votes
    8y

    Holy cow...

  • Columbia, TN · Member since 2018 · 20 posts · 2 votes
    8y
    That is looking pretty great Ben, well done! I didn’t read through all the posts so forgive me if this was already asked, but whereabouts in Pensacola is it? My wife and I are coming down there in a week to scope out the local areas and would love to swing by and take a look at your handiwork!
  • Rental Property Investor · Atlanta, GA · Member since 2017 · 221 posts · 188 votes
    8y

    Congratulations on your first of MANY flips and deals. Great work. In looking at your numbers I dint see your finance cost so I was curious about how you financed this deal. Im assuming your cash?? If not...Hard money, private,  or terms?

    Again, congratulations and on to the next one :) 

    Cheers!

  • Montgomery, AL Investor · Member since 2018 · 171 posts · 56 votes
    8y
    Originally posted by @Daniel T Vo:

    Holy cow...

     😂

  • Member since 2018 · 3 posts · 1 vote
    8y

    Congrats and thank you for some inspiration!

  • Lender · Miami, FL · Member since 2015 · 3 posts · 0 votes
    8y
    This looks great! Congrats and I hope you sell quickly. For Th acquisition would you mind sharing how you funded the loan and if a lender would you mind sharing the info? Thanks!
  • Rental Property Investor · Orlando Florida · Member since 2018 · 11 posts · 4 votes
    8y

    Awesome Job for a first time flip. Even better job at gaining that high of a skill set within a few months. Just think about it most people have to work a whole year make $51,810, especially in that part of the country.  You guys did it in about 4 months from what I see. More importantly you have the skill set now to gain financial freedom. 

    Awesome, Awesome, Job @Benjamin Ervin!!!

  • Member since 2018 · 1 post · 0 votes
    8y

    Wow congratulations and thanks for sharing!! This is my motivation for the day.

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