Good Profit on First Flip / Spec build

[Patrick H.]

Finally completed my first rehab project after 10 months with a partner from BP. He put in the money and I put in the work. The house was nothing more than a shell when I found it on the MLS. It had been partially demolished by the rehabber who bought it before the downturn and then sat open to the elements for 4-5 years. There were no interior finishes and no plumbing, electrical or mechanical systems. It was a definite eyesore for the community.

We renovated the house from 900sqft to about 1550sqft with 3 bedrooms and 2.5 baths. The house sold without listing it on the MLS right after we got our drywall up, about 2 months before it was complete. We made about a 22% profit on the sale. All in all, it was a great learning experience and a successful first effort.

Here are the before and after photos.

[Patrick H.]

Thanks everyone. I really appreciate the comments.

@Zachary D.  Here is a cost breakdown.

purchase price $129,438.79

construction costs $161,804

taxes, insurance etc. $3,577.63

Closing costs  $21,976.94

Sale price $386,500

profit $69,702.64

@Jon Klaus  Thanks! Yes, in a perfect world, scraping it would have likely been cheaper and definitely quicker. Unfortunately, it wasn't possible in this case. The house is in downtown Charleston SC. Its just above the main historic district where you have to get tear downs approved by the Board of Architectural Review. An almost impossible feat. We kept the historic structure, existing heart pine flooring, existing brick chimney and exposed the old rafters and used the historic living space as a selling point. It was definitely what attracted our buyer.