My First Flip - A BP Success Story
Background
My partner who also happens to be my childhood friend started our investment journey 12 months ago and this was our first property together.
The deal
The property was SFH 3/1 about 950SF in Mt. Dora, Florida in a very nice neighborhood where within a mile there are some huge million dollar plus property on a big lake.
How did we find the deal?
I own a kitchen/bath company in Central Florida area and the deal was brought to me by one of my clients whose work I have previously done on multiple properties. The house was off market about to go on the market was owned by a person who had passed away and the property was left in the trust of his two little kids. It was offered to us for $90,000. We counter offered $80,000 but then decided to pay full amount considering the money will be going to the trust of these two kids. We estimated the rehab to be around $25,000. The comps we found in the area to be between $160,000 and $170,000.
The rehab
The property needed full interior rehab. We re-plumbed and re-did the electrical. We painted the whole house interior and exterior, replaced the flooring in the entire house and installed tiles, re-did the bathroom and kitchen, replaced closet and some of the interior doors and did the landscaping. Other than reglazing the bath tub we replaced everything. Total rehab time took us about 9 weeks.
How did we fund the property?
We weren’t too knowledgeable (still aren’t that much) about the hard money lender. We inquired with few lenders but eventually used all cash.
The flip
We tested the market by listing the house for $170,000. It took about two weeks before we received two offers, $170,000 and $172,000. We eventually sold for $170,000 to the buyers who were a young couple with a small baby and they were first time homeowners.
Before & after pictures
Checkout before and after pictures
The numbers
Purchase price - $90,000
Rehab cost - $28,550
Sale price - $170,000
Gross profit - $51,540
The above does not include holding and closing costs.
What’s next?
We are off to looking more of the properties that we can flip and BRRRR. Also due to multiple projects we are not getting financing.
Thank you BP forums, webinars and podcasts. I have learnt so much that I regret not finding BP much earlier. But…………..better late than never! If you have any questions I would be more than happy to answer and help in any way.