First Flip Under Contract...and how things went.

[Philip Coiro]

I wanted to share with you my first flip! 

I'm from Long Island and purchased a house out of state in Pittsburgh, PA. Did it long distance because the buy in here on Long Island is far too high for me right now. I was a little familiar with PGH already but I set up a 3 day trip and met with 4 different agents and went looking at properties with 2 of them. I found two of them on BP and the other two agents I found through Zillow when I looked up one of the highest recent sales in the area. I didn't find anything that I loved when I visited but when I got home I found a interesting house on the MLS, asked one of the agents about it and she went over to check it out for me. She said I should be okay there so I made an offer sight unseen!

Bank Owned, Sitting for over a year, Listed at $89,900. 

We offered $70,000 cash, no contingencies. 

We went back and forth with the bank 9-10 times and landed at $76,250. 

I rented an AirBnb and headed out to GC the job and do most of the work with a partner of mine. My wife and I funded the project with savings and a HELOC for 2/3's of the profit and my partner was just sweat equity for 1/3.

Took the house down to the studs, new electrical, plumbing, furnace, some new ductwork, new windows...new everything. We added a parking pad in the back yard and fence. We did all the work ourselves with the exception of plumbing, electrical, drywall, parking pad and front porch repair work. I had to fire our first drywall contractor as he turned out to be in over his head. I also had to let go of a few other helpers along the way and am close to firing the front porch cement guy. We had to sell the house before he could do the porch work and add it's completion into the sales agreement. Unbelievable, as he was the first guy we hired and did the driveway for us with no issues. That's a longer story for another day. 

We had the house since Jan 1 2019, work started Jan 8th and we were on the Market April 25th. I probably spent 4 weeks in-between back at home in NY so we could have gotten this done a bit faster but all in all, not bad for two guys building a house. 

I let the agent decide the price, She listed it Thursday for $279,000 and we didn't let anyone into the house to see it until Sunday the 28th. 

We got an offer of $270,000 on Monday, We countered at full asking and they accepted! 

All in all we probably spent a little more than I was hoping because of the Airbnb for our stay and some surprises that came up not in the original budget. With purchase, closing cost, holding cost, renovation cost and the selling costs (RE fees, Transfer taxes etc..) we are all in around $207,000, leaving $72,000 Profit. 

I'm looking for the next property now and will probably hire out a bit more of the work and not have a sweat equity partner this time around. 

Here's some pics...