I am so excited that our 4th Flip project finally was closed last Monday. It was the real big flip project for us this year and especially important one because I had joint venture with new investor who came to know from Bigger pockets. I had given chance to work with her to guide and teach her about the flip process. We had some ups and downs on the project but we pulled it through and finally made it to the finish line. Here some interesting info and numbers about the project.

Acquired: Feb 2018

Rehab - 2 - 3 months.

Listed - May 2018

Sold - Sep 2018

Purchased - $115,000

Financed - $110k

Rehab - $63k (investor contributoin.

Sale Price: $224,900 with seller contribution $6k

After all expenses Final Profit - $21k - 33%

Highlights - Removed big pool and created big back yard, did major foundation repair to get to tolerance level, removed walls to make the kitchen open, all new flooring, new roof, new appliances and whole shebang.

Some lesson learned from this project,

1. Unexpected foundation expense

2. Original Contractor left at the end put us in dent and had to hire another one to finish up

3. House was next poorly maintained yard and close to heavy traffic road

4. House wasn't part of the better subdivision which we thought would get us good sale price but we had to reduce 10k even to get an offer.

5. Good professional pictures always helps

If you ask PRO Flipper, I know 33% is not great return but decent return for 6 month project as per me. Keep in mind, I am not a full time flipper and my investor is not either and especially no flipper will joint venture with new investor. We planned right, executed properly and faced hurdles and made it through. We expected it around 50-60% but the reasons listed above we couldn't get it. But we are glad that we aren't stuck with the house. At some point of the time, we don't know what to do because no offers and tried to find way out. I had to turn back around and do some digging to get showing again and finally all fall in place.

I know there are lots of investors who wants to flips. Let me tell you few things, not scare way but to educate you and prepare you for the worst. Don't expect it to go all smooth. Contractor who promises every thing might quit you for no reason and don't even bother to return your calls. You might have city permit issue. You might weather problems. So many variable goes in to making rehab on the house. I know you cannot predict everything but just have mindset to do not give up and fight through it all and try to have back up plan if possible. Most cases if you work hard, things will fall in place... Again, DO NOT ASSUME FLIP IS EASY AND I CAN DO IT. IT IS NOT AT THIS CURRENT SOCIAL CONDITION. Be aware and jump on it with safety net.

If you are interested to see the project pictures, go and visit my profile and you will the project with meadow pines address.

Houston, Texas

7 Votes