Project Stockton - Our First Flip!

[NA Jones]

Hello BP!

On Wednesday, we went to settlement and closed on our first deal!  I wanted to go ahead and document our project with a diary thread from start to finish.

A little background - this house was an REO home listed on MLS. We (my husband and I) partnered with another investor here at BP with similar goals - @Vaughn Lewis .  We (the three of us) walked the house several times before deciding on a max purchase price - then we waited.  The day before Christmas Eve, I got an MLS alert that the price had dropped.  I placed a bid and got a counter - that was 2k lower than our MPP.  We received the notice of accepted contract on Christmas Eve.  

Here are our rough (and a few actual) numbers for your nerdy REI pleasure. :)

Purchase price:  33.8K
Closing costs (and inspections, taxes and insurance through June) 4.2k
Estimated rehab costs:  52k  (several GC quotes ranging from 40k - 55k)
ARV: 130k (although comps support 140-145k, would rent for 1k)
Selling costs:  11k

It's an all cash deal that we will hopefully be all in for 90k.  With margins this wide, we felt like we could make alot of errors and still come out ahead and with newfound experience.

The house is a two story, A frame style house built in 1930.  The plumbing and electric has all been updated in the last 10 years.  The roof is new.  It's on a small lot on a quiet street in a C+ neighborhood, just outside of the "town center" and down the street from a good high school.

We have a very detailed SOW but I'll just give you the highlights..  we plan to install a new HVAC system with duct work, address a few minor plumbing issues, take out 1.5 walls to open up the floor plan downstairs, move the bathroom 3 feet (detailed below) flooring paint and new siding.  Pictures below..

Looking forward to sharing our experience and you can guarantee we will be turning to BP for guidance here and there! :)  Stay tuned!