Stoneham, MA · Member since 2017 · 56 posts · 186 votes
Hi everyone,
My partner and I just completed our FIRST FLIP and we are so excited about it!!! We have both been in construction for nearly 10 years now, and have been talking about trying our hand at our own projects for awhile. Well, we finally took the leap and it was worth it! It was not easy, but we are so glad we did and now we cannot wait for the next one!
$163,000 - Purchase Price
$133,000 - Total Cost (Reno & Operating Expenses)
$17,000 - Commission
$378,000 - Sale Price
$65,000 - Profit
21% - ROI
The project took about 6.5 months. 3 bed, 2 bath 1,400 sq ft single family house outside of Greater Boston. Take a look at the photo's and let me know what you guys think! Also, a big Thank You to everyone who is a part of this great community!
Man I love when the before and after pics are shared on here. You and your partner did an awesome job with the cosmetic finishes...I personally love how inexpensive recessed lighting is and the dramatic difference it makes to a space. Great job and congrats on the ROI!
it seems you are 1 of the very few on here that posted your rehab budget and I wasn't scratching my head how you got those numbers. $133k rehab to do that house looks about right.
whenever I tell people my rehab amount spent, that always tell me I got ripped off, lol! I then ask, "have u ever rehabbed a house?" no. "then lmk when you do."
Clearly a killer flip Steven - especially for #1 and especially from MLS purchase! Congrats. Couple questions that may help us all.
1) ROI - may want to step us through your math. I am not sure you gave yourself enough credit on that 21% if your cash outlay was $163K to purchase and your net profit was $65K after 6.5 mos. Should be much greater ROI if you financed the entire Reno with Private $.
2) Since a flip and since you and your partner both have day jobs, did you consider using IRA or other retirement funds to avoid heavy short term Capital Gains tax? Typically we flip with self directed IRA's. We buy and hold (cash flow) with non IRA's for tax efficiency.
3) Do you mind sharing basic Private Lender terms on this one? I assume this is most of what you are calling "Operating Expenses" here.
Wow that's awesome, I inherited my mother house, her house is a little bigger than that one but I would love to do the same thing to her home, but don't have the funds. Would love to hear more about your project
I love the before and after pictures. Job well done, congratulations. I appreciated the positive affirmation to keep pushing towards your goals. Thanks for sharing.
Thank your for sharing this. Great Job. I've a member on BP for over a year, and just a few weeks ago I got serious about real estate investing. I upgraded my membership a week ago, and I am ready. Thank you for those words that motivated me even more DON'T QUIT! IT WILL HAPPEN! KEEP PUSHING!!! Good luck to you.
@Steven Rubino
Beautiful rehab!
The house photos much larger than 1400sf. Did you have to replace the boiler - steam or hydronic system? Your area experiences some extreme winter temps did you have to deal with frozen pipes?