Just Bought Our First Flip

[Christopher Broussard]

Not really new, I've been lurking on the forums, asking a question here and there, and listening to the podcast for a few years now. In January, my wife and I finally decided to make it happen this year. 

Last Friday we closed on our first property, a 3 bedroom, 1 bath, two story brick home in St Louis, with a detached two car garage. Purchase price was $55,500, and we've budgeted $40,000 for rehab, which will include a new kitchen and bath, an additional 1/2 bath on the first floor, and opening the space up a little. Comps in the area are around $140,000, so our anticipated gross profit is around $45,000. 

I'm nervous, but excited. For years, when I overanalyzed every deal and couldn't pull the trigger, it was because I thought we couldn't do it (the actual rehab). Now, I've already noticed a shift in my perspective and attitude. I am fully confident in our abilities to do it. I'm still a little concerned about the budget, but overall, I feel good. 

Wish us luck.

[Christopher Broussard]

Thomas, we did, but I'm afraid I may have allowed for too low. We've already learned that the wiring is knob and tube and will need to be replaced, which we hadn't planned for, so that's gonna tear up the budget a little. We're not too worried about it, though. Even if we walk away with only a couple of grand, we're learning so much that we will carry into future projects.