First flip under contract

[Mike Hibbs]

Hi BP, I wanted share my first full flip results. After Pics here -- http://www.tourfactory.com/1439937/r_BP Purchased on Auction.com - $147,000 Rehab - $35,000 Holding costs - $~1,500 Contract price - $239,000 Estimated net $40,000 The contract is contingent on buyers selling their home (relocating to area). They will rent home for $1,500/month up to year. They will close 30days after sale of their home, and if they can not close in one year they'll forfeit downpayment of $5,000. I realize this is risk accepting such a low downpayment. Buyers Household income was such, that I felt the reward (extra cash flow) was acceptable. Things I learned-- It took MUCH longer to find my first flip than I anticipated. I was very cautious figuring for worst case. Contractors over promise, and under deliver. I should have fire my first one MUCH sooner than I did. Permits can be important, even in a 'cosmetic' flip. The city permitting dept, is no joke. :) Timelines and budgets are tough to stick to starting out. In the future I will hire even the things I enjoy/can do. I take too long, and too many trips to Lowes...cheaper in long run to hire! Interesting twist-- Today while getting the mail at the 'flip house' I received a 'yellow letter' from another investor attempting to buy it. While he was 6+ months too late, I decided to call him. He is a wholesaler and is signing a contract tomorrow for a project that I am very interested in. Thank you BP community, and I can't wait for the 2016 projects

[Michael Schueler]

Awesome post! hiring a contractor can be a way better option, he brings in his subs that he can count on and keep the timeline that you're shooting for, they can see things that you don't and give you better ideas on things that you missed because that's what they do all the time.