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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  • Delray Beach, FL · Member since 2018 · 7 posts · 3 votes
    8y

    Excellent work.. Will begin mine in July once I close.. condo though in Palm Beach County.. I hope to come in under $40K.. we shall see. Thanks for the great photos and descriptions!

    All the best, 


    Katy 

  • Flipper · Delran, NJ · Member since 2010 · 3 posts · 3 votes
    8y

    May I ask, "how did you obtain this lead, i.e. what marketing did you use?"  What financing?  And did you retain an interior designer or was the "new Look" yours and your wife's creative tastes?  Looks great!

  • Investor · Louisville, KY · Member since 2017 · 102 posts · 80 votes
    8y

    OMG! This is beautiful!!! Great work!

  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y
    Originally posted by @Katy Moraskie:

    Excellent work.. Will begin mine in July once I close.. condo though in Palm Beach County.. I hope to come in under $40K.. we shall see. Thanks for the great photos and descriptions!

    All the best, 


    Katy 

     Which building is your condo in? Feel free to message me if you prefer.

  • Investor · Member since 2018 · 2 posts · 1 vote
    8y

    @Benjamin Ervin

    great job and congratulations. Hope you get it under contract soon, looks great

  • Architect · Seattle, WA · Member since 2015 · 34 posts · 22 votes
    8y
    Interior photos look great! I like the open concept with island (nice pendants above the island) and the front porch columns. #ArchitectApproved
  • Flipper/Rehabber · Hampton Ga. · Member since 2018 · 1 post · 0 votes
    8y

    This is gorgeous. Did you have help with design and selections. Stunning!

  • Real Estate Broker · Staten Island, NY · Member since 2017 · 101 posts · 43 votes
    8y
    Wow, interior is beautiful!! Great job
  • Essex Junction, VT · Member since 2017 · 30 posts · 14 votes
    8y
    Looks good congrats!
  • Nashville, TN · Member since 2017 · 56 posts · 16 votes
    8y

    Nice project! Made this house look from a 1 to a 10! Congrats! Can you tell us how you financed the deal, as well as rehab costs? 

  • Denver, CO · Member since 2015 · 16 posts · 3 votes
    8y

    I love how you opened up the kitchen and the black trim on the windows and door.  Did you install the wood on the ceiling to cover up popcorn?  What kind of wood did you use and was it expensive to use?  Also, what is the wood flooring? It all looks great!!

  • Providence, RI · Member since 2018 · 1 post · 0 votes
    8y

    Wow, very nice

  • Rental Property Investor · Tavares, FL · Member since 2017 · 22 posts · 5 votes
    8y

    Like it. Owned a condo behind Cordova Mall that I bought new when I was stationed at NASP and sold it 10 years ago. Miss the area. What part of town is your house in?

  • Real Estate Agent · Martinez, CA · Member since 2015 · 13 posts · 7 votes
    8y

    Awesome job!

  • Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
    8y

    Ben, just curious how you are marketing the home?  A suggestion for you is to check out 

    snapflatfee.com which I always use to save money on realtor fees. It is very effective and saves at least half in realtor fees. It costs just 99.00 to list on the MLS and you chose what percentage to give buyers agents. I always list at 3 percent. You can also sell yourself and not pay any commission. Worth a look for you to check it out. I put the lockbox on the property myself and get the calls directly from the listing broker. I wish you the best and thank you for your service helping my fellow veterans.

  • Investor · Lake Worth, FL · Member since 2014 · 378 posts · 184 votes
    8y

    Just an add on that Jorge Zea is my broker and is a bigger pockets member.  FYI

  • Mexico · Member since 2016 · 22 posts · 14 votes
    8y

    Good job!  Where did you source your cabinets and counter tops? Ikea?

    We are doing a rehab/flip now with more basic interior styling and have sourced from Lowe's and a local granite dealer.      

  • Flower Mound, TX · Member since 2017 · 2 posts · 0 votes
    8y

    Really pretty! Love the black accents on white. My only bone to pick is what appears to be a ceiling shower fixture attached to the wall in the guest bath (hopefully the water aims fully down!) but, meh, good enough. Hope you get exactly what you want for it!

  • Old Hickory, TN · Member since 2018 · 1 post · 0 votes
    8y

    Was this bank funded, soft money, or hard money? I noticed you holding costs were about $800.

  • Fishers, IN · Member since 2018 · 13 posts · 1 vote
    8y

    Congratulations!!! You did an amazing job!!!

  • West Bloomfield, MI · Member since 2017 · 18 posts · 3 votes
    8y

    Congratulations! Starting is half the battle.

  • Rental Property Investor · Seal Beach, CA · Member since 2016 · 115 posts · 85 votes
    8y
    Ben, that looks amazing. You did a great job. How did you find a contractor to do finish work of that caliber for 41k? That is a lot of god damn finish work!
  • Residential Real Estate Broker · Ferndale, MI · Member since 2016 · 1 post · 1 vote
    8y

    The finishes are perfection!  Did you have a designer help you choose?  Everything from windows to flooring to tile to lighting is A+++. 

  • New Orleans, LA · Member since 2017 · 13 posts · 2 votes
    8y

    Ben,

    Congrats on your first rehab. I've been wanting to start in the RE business myself, but always hesitant due to fear of mistakes. Any pointers for a first timer?

  • Charlotte, NC · Member since 2017 · 57 posts · 17 votes
    8y

    Congrats, Ben!  Night & day!  That's pretty awesome what you did with the place!  And the prospects of making a nice profit, especially on your 1st flip.  Hats off to you, Sir!  I hope you have many more successful projects. 

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