I made 83k profit on this 250k house, with other people's money!

[Yinan Q.]

Hello BP, I thought I'd like to share one of my recent flips with fellow BPers.

Let's start with the numbers and some of the before and after photos first:

Purchase price: 82k

Repairs: 40k

Sale price: 249k

Net profit: 83k

It was an easy cosmetic rehab, roof, paint, flooring, and fixtures.

Even better, I was able to fund the purchase and rehab with private money, so no out of pocket money for me.

A few things I learned from this project I'd like to share:

• Be persistent with your marketing and follow-up. The seller called me on the third mailing in November 2016. He wasn't ready to sell at that time. I kept following up with his and finally bought the house in April 2017.

• Hold your contractor accountable. This house is in an area I've never done deals before. It's too far for the contractor I normally work with so I had to find a new contractor for it. I had a clause in the contract specifying a completion date and penalties if the project goes beyond. The contractor ended up passing the deadline and paid the penalty. 

• Do some driving for dollars when visiting the job site. I spend some time driving around the neighboorhood and write down addresses of distressed properties. I landed another deal by doing so, 5 mins away from this house.

Thank you for reading my story. I hope you find it useful.