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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  • Specialist · Arlington, TX · Member since 2018 · 18 posts · 7 votes
    8y
    You did an amazing job on this home!!
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y

    Hi everyone! Wow, I am flattered by all of the compliments and support.  For those complimenting/asking about rehab budget and design choices, my wife is the real guru.  She is truly the competitive advantage for us.  For me, I handle the less glamorous stuff - the analysis/math is easy and I know the fund raising and relationship building piece will come with more experience, too.  But she has a terrific eye and vision for how to transform each and every space in a house.

    We originally planned for 6 months, but had a goal of finishing the rehab in 3 months. Due to some medical issues with my son, we spent 3 weeks in the hospital and ended up finishing the rehab in about 4 months.

    As far as funding goes, I simply built a sample deal package based on one of the MANY deals I had analyzed and presented the opportunity to a family member and convinced him that this made sense.  I know many of you will read that and think "oh he has family money", but that couldn't be further from reality. I am 25 years old and come from a family who knows nothing about investing whether in real estate or otherwise. So I went to the only person I knew with a strong business mind and good personal finance practices simply to ask his opinion about my plan. He could have easily said, "that is crazy", or "good luck".  But, my drive and education, the spreadsheet I built, and my explanation of the asset/investment was enough to convince him it made sense. He took a chance on us and our plan and when this house  closes it will be that much sweeter to pay that debt off.  

  • Member since 2018 · 2 posts · 0 votes
    8y
    Great job, Congratulations
  • Phoenix, AZ · Member since 2018 · 23 posts · 3 votes
    8y

    that is great, love that you went into detail so i could learn from this and see pictures to see the massive improvement youve done with this house. Im sure your be able to meet your goal.

  • Flipper/Rehabber · Ogden, UT · Member since 2018 · 12 posts · 3 votes
    8y
    Thats an awesome transformation. Thanks for the inspiration!!!
  • Real Estate Broker · Indianapolis, IN · Member since 2017 · 6 posts · 1 vote
    8y
    Well done nice job
  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    8y

    @Benjamin Ervin Nicely done project Ben. Great job!

  • Investor · Chattanooga, TN · Member since 2017 · 63 posts · 27 votes
    8y

    @Benjamin Ervin,  such a great job guys!  I love seeing/hearing these stories.  Love the choice of materials.  Also, I definitely understand the "coming from money" vs not.  My wife and I definitely do NOT come from money, but have been creative in finding ways to generate money to purchase deals.  We have a small handful of deals under our belt, thus dont have too much insight to give, however, keep doing what your doing!  You both have a great end "product" and a vision for this.  I have faith your home will sell quick and you will soon be on your way into your next!

    Wes

  • Dan BeaulieuPro Member
    Lender · Knoxville, Tennessee (TN) · Member since 2016 · 422 posts · 667 votes
    8y

    Man, Great job keeping that rehab budget so low for that much work! I love everything about this project, especially your numbers. Keep it up! 

  • Rental Property Investor · Springfield, IL · Member since 2016 · 3 posts · 1 vote
    8y

    This looks something straight out of Fixer Upper on HGTV! Holy smokes! Great job. 

  • Fredericksburg, VA · Member since 2017 · 14 posts · 3 votes
    8y

    Congratulations. Good job on such a bright, cohesive, and unique look. Far cry from the tan carpet and tan walls from a decade ago!

  • Rental Property Investor · Orange County, CA · Member since 2018 · 98 posts · 138 votes
    8y
    @Benjamin Ervin looks great!
  • Rental Property Investor · Greenville SC & Phoenix, AZ · Member since 2011 · 109 posts · 28 votes
    8y

    Way to go!!  Awesome job.  Congrats!

  • Christi HawkinsPro Member
    Columbus, OH · Member since 2017 · 239 posts · 142 votes
    8y

    It's beautiful!!! Congratulations

  • New York City, NY · Member since 2016 · 25 posts · 6 votes
    8y
    Nicely done! Congrats!
  • Jeff R.Pro Member
    Investor · VA · Member since 2018 · 42 posts · 11 votes
    8y

    Nice work! 👍

  • Rebecca R.Pro Member
    Real Estate Agent · MD · Member since 2016 · 107 posts · 27 votes
    8y

    Very nice!! Congratulations!!

  • Anchorage, AK · Member since 2018 · 20 posts · 8 votes
    8y

    Super impressive sir, Great job and I hope you have many more to come in the future.

  • Lender · Sonoma, CA · Member since 2017 · 7 posts · 4 votes
    8y

    @Benjamin Ervin WOW, what a gorgeous rehab. I am always super impressed by creative people that can look at a project or empty space, and see what it could be. My wife doesn't even trust me to pick out the right color for the bathroom rugs ! lol. It's just not the way my brain works. I have a question, you mentioned that building a rental portfolio is your goal, so I am wondering why you choose to sell this home instead of renting, refinancing , and repeating ? Also , if BRRRR had been your goal at the beginning, would you have chosen to rehab it differently in any way? I am working on my first buy and hold, and I know how i would like it to be if I were going to live in it, but I know renters would trash my perfect carpet and garden gnomes :) Great work man, hope you find lots more deals !

  • Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    8y

    Congratulations :) 

  • Gina AnsonPro Member
    Rental Property Investor · Boise, ID · Member since 2017 · 22 posts · 8 votes
    8y

    WOW!  LOVE everything you guys did!  You hit it out of the park!  I might even steal a few ideas!  Best of luck! 

  • Richardson, TX · Member since 2017 · 2 posts · 3 votes
    8y

    Errr ummm dude I am still picking my jaw up off of the floor!!! Stunning and beauttiiiiiful work! Congrats on your first flip.  Question for you. What is the exterior paint color that you used on the house?  

    I am seriously blown away by this flip :-).

  • Rental Property Investor · Vancouver, WA · Member since 2016 · 22 posts · 3 votes
    8y
    @ Benjamin Ervin, love your extra contemporary touch to the house. The tile job looks very NICE (coming from a former tile setter) and the overall house has a warm welcoming feel to it. I hope you all the best and keep striving for more RE success!
  • Rental Property Investor · Kearney, NE · Member since 2017 · 12 posts · 9 votes
    8y
    Wow that's impressive! 👍🏼
  • Pensacola, FL · Member since 2017 · 163 posts · 312 votes
    8y
    Thank so much everyone! Hunter Sauls , yes I believe we would have chosen different materials in some cases had our intentions been to keep this property as a rental (e.g. butcher block countertops). We are currently in revenue generating mode. I am 25 years old, so I believe I have time to focus on flipping to build revenue and still acquire rentals organically. The idea is to analyze every deal and figure out what makes the most sense. Kim George , thank you for the kind words! We loved how the paint turned out, too - it’s a pure white Loxon Sherwin Williams paint! I was really impressed with its coverage!
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