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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  • Investor · Fort Lauderdale · Member since 2016 · 38 posts · 4 votes
    8y

    Hi Ben,

    You and your wife did a wonderful job!  You should be proud of yourselves. We purchased our first house hack in Ft. Lauderdale and will be moving in August. We're from NYC.

  • Atlantic highlands , NJ · Member since 2017 · 35 posts · 11 votes
    8y
    Benjamin Ervin. First I want to say congrats man on your hard work. Second the want to say thank you for the inspiration, I have obsessed over getting my first flip done. I'm still looking for funding now. I'm sitting at work right now telling myself I can do it, and I log onto the forum and here's you story. This just helped me keep the faith. I nope nothing but more success for you and your wife. Thank you and congrats again
  • Investor · Kailua, HI · Member since 2016 · 72 posts · 33 votes
    8y

    Looks terrific @Benjamin Ervin and the numbers look really good, congratulations! Is the interior renovation and ARV in line with middle of the road to the neighborhood homes?

  • Property Manager · FL - Tampa/St. Petersburg · Member since 2017 · 5 posts · 5 votes
    8y

    I'm in Central Florida and we can't flip unless we have a general contractor license, even as the owner. There's nothing prohibiting you there from doing it just as the owner? 

    If/when you do this again, I would suggest using a flat fee listing company that can get your property on MLS for a couple hundred dollars and offer the buyer's agent their 2 or 3% cut. I've had success selling two former homes offering only 2% (higher $$ amount) bc if a buyer sees it on realtor.com or zillow, they'll make their agent show it to them and agent will just have to settle for 2%.

  • Rental Property Investor · Linden, MI · Member since 2017 · 18 posts · 20 votes
    8y

    Wow.....great job!!!!!!!

  • San Antonio, TX · Member since 2018 · 10 posts · 7 votes
    8y

    Beautiful work and Great number's! Thanks for sharing!

  • Sacramento, CA · Member since 2016 · 15 posts · 8 votes
    8y

    This looks awesome! Great job.

  • Rental Property Investor · Dallas, TX · Member since 2015 · 283 posts · 179 votes
    8y
    Benjamin Ervin Great job on the rehab. Very nice looking. A few things to consider: Plan out whether it will be a flip or BRRR at the beginning. This would be a terrible rental. Too nice and you would be disappointed after wear and tear on it. Materials should be durable not pretty (laminate vs tile/vinyl planks). It shouldn’t be the prettiest house in the neighborhood. Financing: people are referring to hard money lenders. Not fixed Fannie Mae loan. Also consider local credit unions. Dodd frank acts being repealed will help them lend to people they have a relationship with. Great job on the property. Budget is amazing. The design and vision you had for it were great as well.
  • Aspen, CO · Member since 2015 · 14 posts · 3 votes
    8y

    Beautiful well done

  • Real Estate Agent · St. Cloud, MN · Member since 2016 · 18 posts · 5 votes
    8y
    This is an amazing first flip Ben! Looks incredible! I currently reside out in Tallahassee, FL and am wanting to get into the same business as flipping houses and what not, but I’m not sure where to start?
  • Member since 2018 · 20 posts · 10 votes
    8y

    Congratulations!! You did a super job for your first! Did you most of the work yourself? Continued success.

    My group and I are doing fix and flip in Jacksonville, FL, and we are on our 4th, so far so good. Like someone else mentioned, there is more funding than properties that meet our criteria. Competition is fierce, but that's what make it exciting for us.  

  • Specialist · San Diego, CA · Member since 2018 · 88 posts · 54 votes
    8y

    Great job @Benjamin Ervin!  Thanks for sharing.  Keep up the good work! 

  • Member since 2018 · 1 post · 1 vote
    8y
    Looks beautiful! Nice job!
  • Member since 2018 · 1 post · 1 vote
    8y
    Nice project. Congratulations
  • Rental Property Investor · Butte, MT · Member since 2016 · 27 posts · 12 votes
    8y
    Looks great!
  • Manahawkin, NJ · Member since 2018 · 1 post · 1 vote
    8y

    Fantastic job.  Wow.

  • Atlanta, GA · Member since 2018 · 4 posts · 0 votes
    8y
    It looks great! How difficult or easy was it to flip your first house?
  • Rental Property Investor · Miami, FL · Member since 2017 · 3 posts · 1 vote
    8y

    @Benjamin Ervin 

    Firstly great job. Did you leave the popcorn ceiling in place and just cover it with the boards?

  • Investor · Hickory, NC · Member since 2016 · 6 posts · 3 votes
    8y

    Looks great!!!!! I would love to know when it sells and the price.

  • Real Estate Agent · Little Elm, TX · Member since 2016 · 11 posts · 2 votes
    8y

    Great job on rehab!! Just curious how you got the profit of $51K+ after I calculated your acquisition cost, plus rehab and commission fees you're not really gonna get a lot from $175K sale price.  I am a Realtor and investor and you may have also missed the closing cost fees, good luck and hope you can sell it more than $175K.

  • Investor · Superior, WI · Member since 2017 · 3 posts · 4 votes
    8y

    Hi Ben,

    Great job on the rehab! My husband and I just finished our first remodel a few months ago as well. It's a rewarding process. Yours definitely is in a higher class than ours is as far as quality, although in our defense ours was a BRRR rather than a flip and we now have it fully rented out.

    Do you find that rehabbing properties like this one that require more cosmetic appeal to be a good way to go? Our property required quite a bit of contracting work in the way of plumbing, electrical, and roofing. 

    Thanks for sharing!

    Savannah

  • Los Angeles, CA · Member since 2018 · 3 posts · 1 vote
    8y

    Amazing project! Congrats!

  • Hendersonville, NC · Member since 2017 · 3 posts · 1 vote
    8y

    Great job! The inside is BEAUTIFUL and the outside is so much fresher looking. I have been wholesaling for a year but hopefully about to close on my first flip.

  • Northeast Ohio · Member since 2018 · 1 post · 1 vote
    8y

    Love, love love the white subway tiles contrasting with the black & white tile in little bathroom. 

  • Rental Property Investor · Las Vegas, NV • Tokyo · Member since 2018 · 6 posts · 2 votes
    8y

    That's really wonderful! Great job! and Congratulations!

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