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