Latest flip produced just over $40k

[William Allen]

We just closed on our latest flip and the first in our new market.  I figured I would post the story to help out some of those trying to get started.  These are the types of posts that pushed me to get started so hopefully it does the same for someone else.  I'm an active duty military guy who has to manage all of this on the side after/between work.  So, it can be done for those who say it can't.

I found this house by going to an estate sale on my way home from work one day and giving the owner my business card.  They called me a few days later and I met them at the house to take a close look at it and present them with my offer.  This was 3 months into a full marketing campaign so it certainly wasn't as easy as it sounded in the last few sentences.  I wasn't finding what I was looking for and trying everything to find a house, hence the estate sale drive by...

The house was a 5 bedroom / 3 bathroom, 2500 sq ft on just under 3 acres with a pool.  The purchase price was $95k and I paid all the closing costs.  It was built in 1979 and it was mostly original with 2 bedrooms and 1 bathroom added by an enclosed garage (exterior appeared to be done by a pro and interior by a homeowner).  The roof was only a few years old which was a big plus.

We gutted the entire house, tore down multiple interior walls, and rearranged the enclosed garage area to turn the 2/1 in that space into a large master bedroom, bathroom and two large walk in closets.  The original budget for the renovation was $80k but I went slightly over due to some unforeseen items and some upgrades that I thought would add to the resale value once we got going.  

So, here are the main numbers.

Purchase price - $95k + $1,700 closing costs

Rehab - $95k

Fixed costs - $9k (hold time was about 4 months)

We priced the house to sell, received 2 offers after 2 showings in the first 3 days on the market.  Looking back I may have underpriced it but I am happy with the result and the buyers were very happy with the house.

Selling price - $260k  minus closing costs of about $19k

I haven't had time to put together my side by side photos but here are some before and afters for those interested.  

[Arianne L.]

Great job on the renovation! The house looks beautiful, I'm sure the buyers were very pleased!