Real Numbers - Flip Sold in FL! Before & Afters & lessons

[Arianne L.]

Hi All,

Thank you everyone for providing such amazing content on biggerpockets. Here's hoping that my post can help others in some way. 

This is a property we bought off auction in Fort Walton Beach, FL. From purchase closing to sale closing was 6 months and a couple of days.

Purchase price was funded by a private lender and the renovations were funded by our company

Purchase price + closing costs: 127,770

Sold price: $272,500

Renovations: $52,000

Holding costs: 3,200

Closing costs: 6.370

Seller credit: 6,500

Realtor fees: 13,625  (I actually listed this myself since I'm licensed and didn't take commission. But I'm putting the full commission numbers here since I did work for the listing side and somebody else would have paid for that) 

Cost of money: 9,200 

Project Profit = $53,835 

Now, the project profit doesn't include our business overhead like what I pay my project manager who manages our contractors, my assistant, the company's capital cost, etc. All of those were required to make this possible.

Lessons learned: 

Windows are expensive.

Never fall for contractor sob stories. We had to fire a set of subs for this one and we fired them 3 weeks late. They made up all sorts of excuses for three weeks and it lost us precious time and money. They also stole a few thousand dollars worth of materials when they finally got fired, claiming that the materials were stolen from them. But we all know better.

Related to the previous lesson. Winter season is slow in our market. This project could've sold before the end of 2016 if we had gotten it finished sooner. Instead, we listed right around thanksgiving when buying activity significantly decreased. That's several thousand dollars in holding costs and money costs.

There are good realtors out there. The buyer's agent on this one really helped put this deal together and helped guide their picky/panicky first time home buyers.

This was the first project our project manager took on when we hired him. It was enlightening. It was great having someone else managing the contractors so I could focus on building the business.

Our private lender made a great return and is still investing with us after this project! 

Here are some before and afters. Thank you for reading!