All Forum Posts by: Willow T.

@Kevin Durham Not sure about the use of the word "deserve" here, but everything has been shared in the post and/or subsequent comments, including a link to the old Zillow listing. I followed the format of some other BP success posts I've seen on here in order to give as much info as possible. Believe me, I sometimes still can't believe how well I did on this house but the before & afters are somewhat insane. :)

I definitely agree with you and wouldn't say a 6-figure profit on a first flip at the original purchase price range is the norm but I chose to share because it IS possible to find a great deal with due diligence and consistent research. I spent about a year researching options before this house came along. 

I debated for months about whether or not to share my story, and I finally gave in after some careful prodding by a friend. The whole point of sharing is to paint the picture that it is possible to profit on your first flip. 

And as far as a first flip of almost any magnitude, I'd consider it a success if the profit is simply $1. I say this because the learning opportunity is immense and the knowledge gained from finally taking that leap will only help future investments be more successful.

@Susan Maneck That was something that came up in the inspection. I swear to this day there wasn't any mold in that house that I could find (I can't say they're reliable but I did do one of those at-home tests to prove my theory but the buyers weren't having it). The "mold" spores were some old water stains on the joists in the basement. Alas, I chose to keep it civil/easy for a smooth ride to closing and ate the remediation cost. Still kind of gets me if I think about it  :)

@Richard Moreno YES!!! I use Craigslist, FreeCycle, neighborhood online garage sale/bartering pages and groups on Facebook, and some other local sites to find materials. I've literally saved tens of thousands of dollars by spending a few hours on the Internet. It's also a nice break from the dust, dirt, and exhaustion of the DIY. 

Well done on your duplex!

@John Wielgolinski Thank you! The house was purchased in cash and the majority of things were also paid for in cash. I spent almost a year saving and evaluating opportunities before I took the plunge. The only type of "financing" I use for flips is 0% interest on my Home Depot/Lowe's cards when they are running certain promotions. I make the monthly payments and then pay off the balance immediately upon closing for each project. I feel better keeping a cushion of cash for any emergencies/disasters that may crop up otherwise I'd be 100% cash. 

@Brian Hernandez Everything I do for my flips is paid out of pocket. I had a few foreclosures I purchased in grad school in Boston that gave me the cash to do this. They weren't flips because I lived in one for a few years while in school and rented the others. 

I guess the only thing that comes close to financing is sometimes I'll use my Home Depot or Lowe's card for interest-free financing for some materials when they're doing the 12 & 24 month promotions. It helps keep cash in the bank in case there are any unforeseen catastrophes that crop up but for the most part, everything is done in cash. The cards are immediately paid off once the property closes. As far as purchasing the properties, I will only buy in cash. 

@Neil Metzger I've been in that house (that master shower was crazy big)! Used it as a comp for one I currently have on the market and I saw you used mine for yours :)

There's no contradiction here--you know that house closed in 2015. I've done a handful since. I'm just finally getting around to documenting the success in an effort to inspire others. 

@Santiago Steele I'd guess at least 3 times what I spent. I say this because I always employ extremely "creative" ways to fund my flips. This includes using salvage materials (appropriate for the house's period/design), bartering services (see my note above where I did tiling work for a contractor neighbor in exchange for his help with the back porch of this project), and shopping at estate/garage sales (the cabinet in the bathroom wall was purchased at an estate sale for $15!) in addition to clearance sales at various suppliers (it's not uncommon for me to buy 10-20 light fixtures at a time when I find them on sale because I know I'll eventually use them. I put some very nice pendant lights over the kitchen island of my recent flip that I paid $5 each for!).  

I also specifically concentrate my flipping efforts in markets that have cheaper labor (and by cheap I do NOT mean shoddy!) and materials. The cost of living--and renovating--in Pittsburgh is much less than other markets where I've worked such as Salt Lake City and Boston. It doesn't make sense for me to hold these properties because of the profits I can make, so I keep my rentals in Memphis. 

Thanks, everyone! Lots of responses here: 

@Julie Marquez It was a crazy time! Some days I didn't do any work simply because I was burnt out/exhausted which is why this took so long. I balanced the physical labor with the fun of shopping for all the staging stuff, and I made some great friends with the neighbors for when things got a little crazy and I needed a guest bed to crash in. I also rotated free gym memberships so I could shower when both bathrooms were ripped apart, and I often carried my toothbrush with me to Home Depot so I could brush in their bathroom..haha! 

@Matthew Taylor and @Daniel Weaver It's actually in Pittsburgh! I have rentals in Memphis (most in Midtown), but I typically focus my flips in other areas where the returns are much higher. I also love redoing old houses, so I'm a sucker for the 100+ year old gems that most are scared off by. 

@Account Closed You are correct on all counts! The beauty of this house was I used a ton of salvaged materials from a place called Construction Junction. They have pretty much everything and if you're willing to be patient/do some hunting, I've always been able to find the things I need that are in great shape (most look practically brand new once refinished/refurbished/etc) at crazy low prices. I got all of the solid wood kitchen cabinets and hardware for the kitchen for $200. A $75 Rustoleum kit allowed me to refinish them and buyers loved them during the open house. As for the outside, I was lucky that the house was brick and didn't need anything other than the roof/gutters. I got the materials for the landscaping for free off of Freecycle and Craigslist, too! To keep costs down, I also bartered. The back porch was incredibly cheap because the neighbor was a contractor. I helped him with some tiling in a house he was working on in exchange for his help with the porch. By bartering services, I was essentially able to squeak by with just paying for materials for the porch. It's taken me years to make the friends I have there who will always help me with my houses. It's an interesting way to do things but it's always served me well so far!

I anticipated a question/response like this, especially after reading the BP forums. It was actually around 27K, but as I noted, it was a slow, non-traditional flip. The roof was $7K, the panel $1,800, the radiator repairs $684, and the back porch $785. If you work in an area like this, the labor/material costs are ridiculously low, hence my not openly advertising my investing sweet spot. 

As far as "he," I am a she.

And as for living there, this was a very slow flip. You'd be amazed what kinds of things the city will allow you to do with a dilapidated property as long as your work is inspected. Not all markets are made the same. Do your research and you too can have these margins. It's definitely not fluff, but representative of a place most overlook in terms of real estate investing. 

No matter where you live, there's always a diamond in the rough!

Thanks everyone!