Purchased My First Flip

[Franky Juwana]

I have to start with this.... 

So the last 10 years I have been reading hundreds of forums, reading books about real estate, listening to audio books, attended seminars, bought real estate materials etc... so last year I decided to do long distance out of state buy and hold investing in Texas (I'm live in NY) but at the last minute, 2 parties didn't reach agreement over $2000. So deal failed, but I was glad it was failed considering few things didn't add up and I might've made mistakes in my calculations. 

This year, my ex-co worker just closed on his 2 family investment property, the proceed he bought a house for himself to live and the rest he planed to buy commercial but he didn't have any luck so he contacted me to partner up, I guess to split the risk sort of saying. 

Long Story short, we found a "ugly" house on mls that not in foreclosure yet that some company bought it directly from owner, but everything still in working condition, just need cosmetic rehab. 

Here's the breakdown:

Asking : 350k  , we offered 315k, agreed at 324k 

ARV : 460k with 40k-50k for rehab

Closing cost 5k

We use all cash because my partner money came from 1031 exchange (250k) and I just put a small portion of it (75k).

the plan is to keep snowball this until we buy commercial with good passive income or keep flipping. 

In my opinion, rental is not preferable in NY due to law side with tenants who can literally live for free for close to a year.  

It is not the end, it is just the beginning, I'm excited...  

I'll update you again with After pictures once it's done rehab. 

Thanks again BiggerPockets! 

Here are some pics before