First Successful Flip done!

[Steven Calascione]

Hi Everyone,

First time posting here! Bit of a back story, I am a rather new investor and currently have (2) rental properties in my portfolio. I do work a full time 9-5 job and balancing both can be challenging. I wanted to raise some capital to expand my buy and hold capabilities and decided to give house flipping a try. This home was purchased on Auction.com back in January and after a few months and many mistakes, I am proud to say that we are done!

While it doesn't look like I'll be making nearly as much profit as I thought (in fact we came close to breaking even), it was a tremendous learning experience. The fact that we didn't lose money was a win in my book.

Going into the project, I thought I had set aside extra funds for the unanticipated pop up expenses, unfortunately it wasn't nearly enough. Half way through renovations when we discovered that the underground oil tank was leaking and had to be replaced. If I had done proper due diligence it would have saved me $5000. 

This project was very scary for us to dive into, we knew a limited amount about construction and had to rely heavily on our contractor. Thankfully he was able to steer us in the right path and we got the job done on time.

This project was very scary for us to dive into, we knew a limited amount about construction and had to rely heavily on our contractor. If you are new to home renovations, please do not be afraid to take the leap! The knowledge we gained was priceless and we are now armed with the tools needed to tackle another project. If I can do it working a full time job, with no construction experience, with a wife and a baby on the way, then you can do it too! 

[Steven Calascione]

Hello everyone,

Thank you for these kind words! Here are the numbers, I should have included these in the original pos, my apologies.

Purchasing- Bought the home on auctiob.com for $147,500- with the added commission payout to the site- final closing cost was $155,000

Here is a snap shot of the renovation costs (I rounded to nearest number). We got very lucky with the kitchen cabinets, they were in decent shape. All we did was resand, paint and change out the handles. Came out great! 

I'm in the process of closing on the place now and am hoping the sale goes through. Considering the tough times we are all experiencing, I wouldn't be surprised if the buyer backs out. 

Potential sale price- $240,000. With closing costs, we should come away with a $10-$12,000 profit (not counting cap gains tax). Not the best, but still worth it, in my opinion.

LABOR	PRICE
INTERIOR
Den/Apartment/Bathroom #1	$4,299.00
Living Room/Office	$3,850.00
Kitchen	$7,140.00
Bathroom # 2	$2,770.00
Upstairs Bedrooms	$1,991.00
Flooring/Carpet	$3,076.00
Cabinet Refinishing	$800.00
Countertops	$1,000.00
Hinges/Knobs/Etc Install	$200.00
Appliances	$1,450.00
Oil Tank Repair and Relocation	$5,000.00
EXTERIOR
Roofing	$4,475.00
Bilco Door	$500.00
Siding	$9,350.00
Decks	$750.00
Landscaping	$500.00
Windows	$3,000.00
Tree Removal	$1,600.00
TOTAL:	$51,751.00