90-Day Challenge: I did it! My 1st $1M Fix & Flip in Los Angeles

[Gregory Storm]

I'm new to BiggerPockets and thought I would introduce myself with my first fix and deal.  I'm based in the Los Angeles market and 6 weeks ago I made the decision that I was going to flip 6 houses in 2018.  I said if I was going to be serious about it, I needed to find a flip-worthy property in Los Angeles and close escrow before the end of 2017.

Well, I did it!

I closed escrow on my first fix and flip in Los Angeles right before Christmas and I’ve already learned some lessons! Lesson #1: Don’t close escrow right before Christmas. At least not if you want to get any work done before the end of the year. :-)

With that said, I’m super excited about the project and work begins this week. It’s a 3 bedroom, 2 bathroom Charles DuBois mid-century modern architectural with a little over 2200 square feet. I’m going to make it a 4 bedroom, 3 bathroom with a bigger kitchen, new wood floors, more open floor plan and a true master bathroom.

I was able to get the house under asking price at $835,000 without multiple offers because I snatched it up an hour after it fell out of escrow with a previous buyer. A house with a similar floor plan that needed major foundation work and had wood rot and would have cost double the amount to rehab got 42 offers in 48 hours and sold for $20k more than what I paid so I feel that I got a good deal.

I’m still getting bids from contractors, but the rehab, carrying costs, and staging should come in less than $100,000. After it’s done, I plan on listing the house for $949,000 or $999,000 with a target sale price between $1,100,000 to $1,200,000.

Here are a few before photos.

If you're a real estate investor fixing and flipping houses in the Los Angeles market, I would be great to meet you.

[Michael S.]

Congrats on the first deal Gregory, it looks awesome