Houston, TX - Diary of a First Flip

[Matthew Marcelissen]

Hello, BP!!!

Last month I closed on UG1 (Ugly House 1). I’m extremely excited to have landed my first project! Since I dived into real estate investing this spring, I have been on a non-stop learning roller coaster. After procuring my real estate license in March, I spent most days analyzing properties to visit. I spent the weekends driving around town visiting these properties. In case we need a reminder Houston is HUUUUUUGE. When I did find a property where the numbers aligned, I submitted an offer. However, with real estate investing at an all-time high, so did everyone else. After 10 failed offers, I realized I needed to move upmarket, where there is less competition. And, with my “lucky” 13th offer, I landed UG1.

For those who would rather read, some stats on UG1:

• Located in the Walnut Bend subdivision in Briar Forest
• One story, four bedrooms, two baths, 2,187 SQFT
• Buying price: $275,000.00
• Rehab budget: $75,000.00
• New Listing Price: $424,900.00
• Timeline: 10 weeks

The house is what I like to call a “Grandma special.” It was well taken care of and maintenance was up-to-date. The house has new double-pane windows, few roof, new furnish, new electrical box with a 175 AMP, and it even came with an EV charger in the garage. Did grandma have a Tesla?

As you can see from the pictures, the house needs a TOTAL remodel. We’re talking $35 SQFT remodel. We’re talking money. The scope of work is rather extensive. And, I’ll make a separate blog post on comping properties and knowing how to improve to reach maximum after-repair value.

After meeting what seemed like 10 contractors at the house, I finally settled on one that only works with investors. I like their approach, because investors focus on what sells; they don’t have to deal with sometimes overly-critical owner occupants.

The rehab will kick off next week. The journey will take approximately 10 week; I’ll be there to document every step. Stay tuned for weekly updates. I’ll share what went well, what hasn’t been going well, and we’ll learn together.