Flipping Homes - My Exciting Journey (Post 2 of ?)

[David Friedman]

Hello BP!

I've started posting all of my previous flips, now that I feel like I've completed enough to actually have some good original content. I hope that by sharing we can all learn, network and discuss this interesting business!

Link to my previous post: Flipping Homes- My Exciting Journey (Post 1 of ?)

This was my second flip and the best ROI we have earned to date. I just wish it was on a bigger house! We bought this property from an heir of the owner who had passed away recently. We were introduced to the heir from friends that knew we bought and fixed up homes. Networking has brought us some of our best deals. Here are the details:

Purchase Price: $105,000

Received Commission: $0

Estimated Rehab: $10,000

Estimated Time Frame: 3 months

Sold Price: $180,000

Actual Costs: Approximately $13,250 with escrow fees, agent fees, carrying costs and rehab

Net Profit: $61,150 or 51.4%

Before Pictures:

What I Learned:

- Networking can bring immense value.

- Be prepared to take advantage of an opportunity at a moments notice.

- Smaller homes sell quicker and usually have lower rehab costs.

- Don't undersell the property. Comps said that I could sell this house for $170,000. I started at $180,000 and received a full price offer in a matter of days. If you put high quality work and materials into your flips, ask for a higher price.

- Staging will help to sell a house. It shows a potential buyer ideas on what they can do with the space.

After Pictures:

Summary:

The heir who sold the home to us lived many hours away and was tired of taking care of all of the break-ins to the property. This was his motivation to sell. We paid cash and closed escrow in 15 days. This home did not have much work to do except some upgrading. It took approximately 2 weeks to rehab the entire home. We sold this home in 2 months. This was before the new FHA Flipping laws.

The stain on the wood flooring had taken a beating and it was less expensive to cover it with carpet. We put tile in all of the "wet" areas and prefer to lay it in a diamond shape. Same amount of work, but more buyers desire this look. We kept the same cabinets in the kitchen and used a staining trick that has saved us plenty of money up to this point. We had several offers in 2 DAYS!! Overall, this flip was not hard or challenging

I will try to post more previous flips as I have time. If you think I can improve on the formatting of the post or if you think I am leaving out crucial information, please let me know. I will try to answer every question.