THIS FLIP WAS A HOME RUN!

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THIS FLIP WAS A HOME RUN!

Lesley Resnick
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes

This was a project I did with an out of town investor, the house is in Jacksonville, Florida and he lives on the west coast. Originally he was reluctant to buy the house. It was under contract 2x. He almost talked himself out of it.  But after all, he made a great decision and it was amazingly profitable.

Numbers:

80k Purchase – cash

35k – Reno

Roof, siding, paint inside and out

Kitchen cabinets and countertop resurfaced

Plank floor

New tile in bathroom

Repair electric and plumbing

Home staging 1% of sale price

6 month project

165k sale price less 6k closing costs

44k Profit

Regrettably, this will probably be the most profitable flip I am involved with for the foreseeable future. It all lined up perfectly.

I love home staging. The company I use is top notch and it makes all the difference in trying to sell the house. Buyers often have trouble picturing what it will look like with furniture. 

BEFORE PHOTOS

AFTER PHOTOS

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Most Popular Reply

Benjamin Larance
Investor · Littleton, CO · Member since 2016 · 6 posts · 6 votes
8y

I agree with all the other posts - great project and tastefully done.

But I can't make the rehab numbers work.  For example, a quick "back of the napkin" conceptual estimate (WAG) suggests the following:

  1. Appliances (dishwasher, refrigerator, stove, hood):  $3,500
  2. Kitchen sink, disposal and faucet:  $500 (material only)
  3. Kitchen hardware:  $200 (material only)
  4. Kitchen cabinet restoration:  $3,000
  5. Kitchen countertop restoration:  $1,500
  6. Plank flooring:  $3.50/SF x 2,000 SF = $7,000 (material only)
  7. Electrical rehabilitation (including light fixtures):  $4,000
  8. Plumbing rehabilitation (including toilets, faucets & shower):  $3,000
  9. Bathroom tile (2 baths):  $5,000  
  10. New roof:  $10,000
  11. New siding:  $6,000
  12. Paint (outside):  $4,000
  13. Paint (inside):  $5,000
  14. Staging: $1,650

TOTAL:  $54,350

This estimate does not consider any cost associated with building permits or design professionals.  There is no money for demolition or mold remediation.  There is no money for any foundation repair or drainage improvements.  There is no money in my WAG for new doors or door hardware.  There are no dollars assigned to new HVAC equipment or a water heater.  No allowance for stair (treads and risers) or handrail rehabilitation.  No allowance for insulation or other thermal improvements - such as upgraded windows.  No money dedicated to moving or eliminating interior walls.  No allowance for garage door replacement.  No allowance for new landscape, privacy fencing or flatwork rehabilitation.  
 

I could not have accomplished the level of renovation you show for the dollars expended.  Am I missing something or do you get REALLY good rehab pricing in your area?    

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  • Shaun Morgan
    Windham, NH · Member since 2017 · 10 posts · 6 votes
    8y

    Place came out great @Lesley Resnick ! Was this a situation where the investor financially backed the project and you ran it, I.e. you scheduled the work, found the contractors, sold the house for him etc? Essentially the investors boots in the ground.  Or were you strictly the listing agent? If you handled everything do you have a partnership with the investor or is this is a service you offer as part of your business?

    0Reply
  • Dave Passey
    Investor · Missoula, MT · Member since 2015 · 242 posts · 177 votes
    8y
    @Lesley Resnick Congrats on doing an awesome job! That sounds like a great deal and the project looks exceptional. Where did you find the deal? How did you get connected with the out of state investor? What are you doing to do to ensure that you will find more great deals?
    0Reply
  • Lesley Resnick
    OP
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Shaun Morgan:

    Place came out great @Lesley Resnick ! Was this a situation where the investor financially backed the project and you ran it, I.e. you scheduled the work, found the contractors, sold the house for him etc? Essentially the investors boots in the ground.  Or were you strictly the listing agent? If you handled everything do you have a partnership with the investor or is this is a service you offer as part of your business?

    As a practice, I am involved in the entire project.  You could say it is a service.  I sourced the property, on or off market,  I have a project management business that runs reno.  I do 3-5 deals a month with my contractors, I get wholesale pricing and stellar service.   I work with the staging company to set up the house and I list it.   

    3Reply
  • Lesley Resnick
    OP
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Dave Passey:
    @Lesley Resnick Congrats on doing an awesome job! That sounds like a great deal and the project looks exceptional. Where did you find the deal? How did you get connected with the out of state investor? What are you doing to do to ensure that you will find more great deals?

    Thanks for the kind words. I find on and off market properties. I review all new MLS listings every day. I work with a lot of wholesalers who call me first. My biggest challenge is liquidity. I have more deals than I can do, so I do projects with and for other investors. I currently have 2 in the cooker and another that I can not financially get to quick enough.

    0Reply
  • Grayson Wester
    Lender · San Antonio, TX · Member since 2018 · 109 posts · 108 votes
    8y

    Wow what an awesome flip! It looks great, congrats!

    0Reply
  • Shaun Morgan
    Windham, NH · Member since 2017 · 10 posts · 6 votes
    8y
    Originally posted by @Lesley Resnick:
    Originally posted by @Shaun Morgan:

    Place came out great @Lesley Resnick ! Was this a situation where the investor financially backed the project and you ran it, I.e. you scheduled the work, found the contractors, sold the house for him etc? Essentially the investors boots in the ground.  Or were you strictly the listing agent? If you handled everything do you have a partnership with the investor or is this is a service you offer as part of your business?

    As a practice, I am involved in the entire project.  You could say it is a service.  I sourced the property, on or off market,  I have a project management business that runs reno.  I do 3-5 deals a month with my contractors, I get wholesale pricing and  service.   I work with the staging company to set up the house and I list it.   

     Sounds like you have a solid  operation going. Thank you for taking the time to answer my questions. Keep crushing it down there!

    0Reply
  • David Zheng
    Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
    8y

    Looks awesome! Can I ask how long it took you from purchase closing date to sell closing date?

    0Reply
  • Joseph M.
    Flipper/Rehabber · Los Angeles, CA · Member since 2009 · 1k+ posts · 732 votes
    8y

    @Lesley Resnick , congrats , looks very nice!

     What was the net to the investor after holding costs, selling commissions,etc?

    You mentioned this being the most profitable flip for the foreseeable future. What are some typical ones you've worked on with investors especially out of town? Or maybe some typical ROIs for the investor within say a 6 month period...based on paying cash. 

    Thanks

    1Reply
  • Jon Crosby
    Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    8y

    Nice job @Lesley Resnick!  Place looks amazing and I wasn't even really aware of this particular investing strategy where you partner with an outside investor for a single flip (obviously for a flipping business with a pool of properties I've seen it though).  If you don't mind me asking, what kind of entity or contacts are you setting up for these partnerships?  

    Nice work on the rehab and hope you get a repeat win in the near future! 

    0Reply
  • Jonathan Soto
    Lender · Newark, NJ · Member since 2016 · 695 posts · 252 votes
    8y

    Awesome pictures and great profits, i'm sure he won't be scared to pull the trigger after those profits came back. i'm looking to invest out of state and Jacksonville caught my eye a few times.

    0Reply
  • Daniel Guas
    Real Estate Professional · Levittown, NY · Member since 2016 · 38 posts · 10 votes
    8y

    what type of cabinets did you use and where did you buy them from?

    Great job on the flip!

    0Reply
  • Philip Williams
    Rental Property Investor · Rockford, IL · Member since 2014 · 385 posts · 702 votes
    8y

    Hey one question I didn't see anyone mention, how are the investors closing costs so low? Our commission is 5% on average just that alone would have been around 8k not to mention title fees etc?

    0Reply
  • Lesley Resnick
    OP
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @David Zheng:

    Looks awesome! Can I ask how long it took you from purchase closing date to sell closing date?

    The project ran for 6 months.  The first purchase contract fell through and we lost a month.

    0Reply
  • Lesley Resnick
    OP
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Joseph M.:

    @Lesley Resnick , congrats , looks very nice!

     What was the net to the investor after holding costs, selling commissions,etc?

    You mentioned this being the most profitable flip for the foreseeable future. What are some typical ones you've worked on with investors especially out of town? Or maybe some typical ROIs for the investor within say a 6 month period...based on paying cash. 

    Thanks

    The investors used cash, the holding cost can be calculated in a number of ways.  If you look at a hard money comparison, it looks one way.  If you compare it to a savings account, it looks completely different.

    The average flip is turning in $20-30k out in under a 6 month hold on 100k-125k investment.  So, I come up with 25% for six months or 50% annualized.     

    2Reply
  • Lesley Resnick
    OP
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Daniel Guas:

    what type of cabinets did you use and where did you buy them from?

    Great job on the flip!

     Great looking cabinets and counter top?  They are resurfaced (repainted).  There is a polymer paint he uses.  Never under estimate the value of modern draw pulls.  I have a guy here that is an artist and does amazing work.

    0Reply
  • Bryan Hamon
    Meridian, ID · Member since 2018 · 16 posts · 8 votes
    8y
    @Lesley Resnick The renovations look great! Thank you for sharing.
    0Reply
  • Benjamin Larance
    Investor · Littleton, CO · Member since 2016 · 6 posts · 6 votes
    8y

    I agree with all the other posts - great project and tastefully done.

    But I can't make the rehab numbers work.  For example, a quick "back of the napkin" conceptual estimate (WAG) suggests the following:

    1. Appliances (dishwasher, refrigerator, stove, hood):  $3,500
    2. Kitchen sink, disposal and faucet:  $500 (material only)
    3. Kitchen hardware:  $200 (material only)
    4. Kitchen cabinet restoration:  $3,000
    5. Kitchen countertop restoration:  $1,500
    6. Plank flooring:  $3.50/SF x 2,000 SF = $7,000 (material only)
    7. Electrical rehabilitation (including light fixtures):  $4,000
    8. Plumbing rehabilitation (including toilets, faucets & shower):  $3,000
    9. Bathroom tile (2 baths):  $5,000  
    10. New roof:  $10,000
    11. New siding:  $6,000
    12. Paint (outside):  $4,000
    13. Paint (inside):  $5,000
    14. Staging: $1,650

    TOTAL:  $54,350

    This estimate does not consider any cost associated with building permits or design professionals.  There is no money for demolition or mold remediation.  There is no money for any foundation repair or drainage improvements.  There is no money in my WAG for new doors or door hardware.  There are no dollars assigned to new HVAC equipment or a water heater.  No allowance for stair (treads and risers) or handrail rehabilitation.  No allowance for insulation or other thermal improvements - such as upgraded windows.  No money dedicated to moving or eliminating interior walls.  No allowance for garage door replacement.  No allowance for new landscape, privacy fencing or flatwork rehabilitation.  
     

    I could not have accomplished the level of renovation you show for the dollars expended.  Am I missing something or do you get REALLY good rehab pricing in your area?    

    3Reply
  • Damaso Bautista
    Rental Property Investor · Hawthorne, CA · Member since 2018 · 655 posts · 900 votes
    8y

    @Lesley Resnick Very nice work! Congrats.  

    0Reply
  • Adam Mittermeier
    Specialist · Little Rock, AR · Member since 2018 · 148 posts · 71 votes
    8y

    Looks Great!! Congrats!

    0Reply
  • Sarah Ellis
    Real Estate Agent · Clarksville, TN · Member since 2017 · 26 posts · 13 votes
    8y
    That is awesome! Great job!
    0Reply
  • Sunny D.
    Pleasanton, CA · Member since 2015 · 246 posts · 115 votes
    8y
    Originally posted by @Benjamin Larance:

    I agree with all the other posts - great project and tastefully done.

    But I can't make the rehab numbers work.  For example, a quick "back of the napkin" conceptual estimate (WAG) suggests the following:

    1. Appliances (dishwasher, refrigerator, stove, hood):  $3,500
    2. Kitchen sink, disposal and faucet:  $500 (material only)
    3. Kitchen hardware:  $200 (material only)
    4. Kitchen cabinet restoration:  $3,000
    5. Kitchen countertop restoration:  $1,500
    6. Plank flooring:  $3.50/SF x 2,000 SF = $7,000 (material only)
    7. Electrical rehabilitation (including light fixtures):  $4,000
    8. Plumbing rehabilitation (including toilets, faucets & shower):  $3,000
    9. Bathroom tile (2 baths):  $5,000  
    10. New roof:  $10,000
    11. New siding:  $6,000
    12. Paint (outside):  $4,000
    13. Paint (inside):  $5,000
    14. Staging: $1,650

    TOTAL:  $54,350

    This estimate does not consider any cost associated with building permits or design professionals.  There is no money for demolition or mold remediation.  There is no money for any foundation repair or drainage improvements.  There is no money in my WAG for new doors or door hardware.  There are no dollars assigned to new HVAC equipment or a water heater.  No allowance for stair (treads and risers) or handrail rehabilitation.  No allowance for insulation or other thermal improvements - such as upgraded windows.  No money dedicated to moving or eliminating interior walls.  No allowance for garage door replacement.  No allowance for new landscape, privacy fencing or flatwork rehabilitation.  
     

    I could not have accomplished the level of renovation you show for the dollars expended.  Am I missing something or do you get REALLY good rehab pricing in your area?    

     You can save a lot more on material if you shop around. I am working with a local partner on a flip in Bay Area and we have got decent savings shopping around.

    example: nice looking cabinets plus counter top for 3200. if you buy materials at a store with nice show room you will pay more. We found same materials at less cost in other stores more focussed on volume sales than have large expenses with a trendy show room. If you have time and patience you can knock 35 to 40 pct off on your estimates. btw a great tool to find local discounted stuff is brickseek. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    8y
    Originally posted by @Benjamin Larance:

    I agree with all the other posts - great project and tastefully done.

    But I can't make the rehab numbers work.  For example, a quick "back of the napkin" conceptual estimate (WAG) suggests the following:

    1. Appliances (dishwasher, refrigerator, stove, hood):  $3,500
    2. Kitchen sink, disposal and faucet:  $500 (material only)
    3. Kitchen hardware:  $200 (material only)
    4. Kitchen cabinet restoration:  $3,000
    5. Kitchen countertop restoration:  $1,500
    6. Plank flooring:  $3.50/SF x 2,000 SF = $7,000 (material only)
    7. Electrical rehabilitation (including light fixtures):  $4,000
    8. Plumbing rehabilitation (including toilets, faucets & shower):  $3,000
    9. Bathroom tile (2 baths):  $5,000  
    10. New roof:  $10,000
    11. New siding:  $6,000
    12. Paint (outside):  $4,000
    13. Paint (inside):  $5,000
    14. Staging: $1,650

    TOTAL:  $54,350

    This estimate does not consider any cost associated with building permits or design professionals.  There is no money for demolition or mold remediation.  There is no money for any foundation repair or drainage improvements.  There is no money in my WAG for new doors or door hardware.  There are no dollars assigned to new HVAC equipment or a water heater.  No allowance for stair (treads and risers) or handrail rehabilitation.  No allowance for insulation or other thermal improvements - such as upgraded windows.  No money dedicated to moving or eliminating interior walls.  No allowance for garage door replacement.  No allowance for new landscape, privacy fencing or flatwork rehabilitation.  
     

    I could not have accomplished the level of renovation you show for the dollars expended.  Am I missing something or do you get REALLY good rehab pricing in your area?  

    these are great points although I will say I agree that the 35k all in reno seems low.. your pricing is a tad high for most areas.

    I know i paint my new construction 2400 sq ft homes for 3500 outside 3500 inside.. ..  . but generally speaking I agree that this looks like more than  35k reno..  maybe she will comment on total costs..

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    1Reply
  • Cody Smith
    Realtor · Panama City Beach, FL · Member since 2018 · 122 posts · 63 votes
    8y
    @Lesley Resnick Wow, that place truly looks incredible! After reading through some of the dialogue, it is inspiring to here the basis of the machine you have running for this business. I too one day aspire to have a self sustaining business covering all aspects of my investing. In regards to the home staging, is 1% if the sale price a pretty standard fee among companies? Thanks!
    0Reply
  • John Patterson
    Contractor · Canton, GA · Member since 2015 · 111 posts · 81 votes
    8y

    @Benjamin Larance Nice Estimate. I agree there are corners that can be cut . 

    Not demonizing, but impressed if this is actual cost. In today’s labor ,materials and Technology have placed a minimum on what costs are today. To a novice, this would cost them 50-$60,000. Unless, sweat equity is removed. 

    Also, where are the contractor costs? I hear so many stories about contractors ripping off people. Did he not get paid?

    0Reply
  • Lesley Resnick
    OP
    Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Cody Smith:
    @Lesley Resnick Wow, that place truly looks incredible! After reading through some of the dialogue, it is inspiring to here the basis of the machine you have running for this business. I too one day aspire to have a self sustaining business covering all aspects of my investing. In regards to the home staging, is 1% if the sale price a pretty standard fee among companies? Thanks!

     Staging varies in cost, 1% and a minimum is common (200K).  The vendor I use does not and have a minimum and takes phots.  I do a lot of business with her.

    0Reply
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