One of my first flips
After going to the Bigger Pockets summit, I realized how much I had learned from the community, and felt that I should start giving back a bit. I figured the best way to give back would be to educate others starting out with a blog of my past experiences.
This is the first blog I've ever written, so please forgive me if my blogging and writing skills are lacking :)
This town house was one of my first flips which I got from the trustee sale. The interior was a bit messy from the previous owner, and it took a while, but in the end, my partner and I made around $4000 and it was a good learning experience.
Before pictures:
The previous owner left a lot of their just for us, so first we got a trashout, and then came the repairs.
We did the typical paint and carpet on this one, but just starting out, I made the mistake of over improving, and also installed travertine in the bathrooms, granite countertops, stainless appliances.
Property Repaired:
Acquisition Date: May 21, 2010
Acquisition Source: Trustee Sale
Disposition Date: July 30. 2010
Expenses
Acquisition Price: 67000.01
HOA Lien Payoff: 1362.00
Transfer Tax: 360.25
Trash Lien: 413.38
Utilities and Assessments: 264.69
Repairs And Trashout: 7829
Total: $77,228
Sale Price: $86500
Closing costs and commissions : $5155
Net Proceeds from sale: $81345
Profit: $4117
In the end, the rehab on the project killed the profit. While the property came out absolutely beautiful, I made the mistake of over improving for the area. Looking back, travertine floor and surrounds, stainless appliances, and granite counter tops was a bit unnecessary for this property, but this one still served as a great learning experience.
Comments (5)
Great work Jesse. You might have netted $4K on the deal but your experience is invaluable and will quickly turn that $4K to $40K
Kevin Kaczmarek, about 14 years ago
Jesse Nice work. I like the idea of making every deal better than the last. Good Investing
Michael Zuber, about 14 years ago
Josh, Thank You! Ill try to post and share as much as I can. And it was great meeting you at the summit as well. I hope there will be another next year. Jerry, All the work was subbed out, I can barely work a hammer without hurting myself! As far as savings: porcelain rather than travertine would've saved about $500 granite tiles rather than slab would've saved $300 black appliances rather than stainless appliances would've saved about $1,000 Those three things could've added $1,800 to the bottom line. Looking back, its a good $1800 lesson.
Jesse Tsai, about 14 years ago
Jesse, Nice post. Always great to see how others start and learn. Did you do most of the work yourself or sub it out? What other materials would you use instead of the travertine and granite and how much do you think that would have saved? Congratulations on your first profitable flip!
Jerry K., about 14 years ago
Jesse - It looks great! Nice work. Thanks for sharing the details, especially lessons learned. I hope you'll continue to blog and share your deals and wisdom! It was great meeting you at the Summit!
Joshua D., about 14 years ago