My Very First Flip Just Went Live on MLS

[Craig Drummond]

Hello investing friends! My very first "flip" went live on MLS today. What a great learning experience and it was definitely very different than what I've seen on HGTV. :) Nonetheless I LOVED the process.

Before/after pics attached. It was A LOT of work but the home cleaned up real nice.  Now I'm hopeful for a quick sale!

https://www.redfin.com/…/P…/2801-Darr-Ct-95667/home/22299722

A shout out to Brandon Turner for his book on REI that inspired me to understand the seller's motivations and concerns and then put together a creative offer to address them. That piece of advice helped me to land this deal despite several higher cash offers that were submitted.

Here are some pics along w/my before & after collage.  

[Craig Drummond]

As requested, here are the #s as it stands today.  I'm sure the profit will be something less than this once I close.  I have a very long holding period on this project since it was incredibly difficult to find an available contractor.  It took me 5 weeks of contacting 35+ contractors to find one and work didn't begin until ~8 weeks after close.  The contractor also went over his projected timeline by 5 weeks.  Partly due to weather and partly due to his double booking his time.  Definitely a learning experience!

Purchase / Sale

   Purchase Price (Act)  $180,500

   Sale Price (Est)  $395,000

Fixed Costs

   Buying Costs (Act)  $14,267

   Holding Costs (Est - this incl loan i pmt)  $25,223

   Selling Costs (Est)  $23,550

Total Fixed Costs  $63,040

Repair Costs

   Finish Materials  $22,924

   Labor / Equip / Build Materials  $58,158

Total Repair Costs  $81,082

Total Project Cost (Less selling costs & ipmt)  $282,203

Total Investment  $324,622

Profit  $70,378

Also, here is some more info on how I found the deal. I found it via a Zillow alert that I have set up for my area. The previous owner's daughter listed it FSBO on Zillow 10 days before it was due to go to county auction for a tax lien. I was one of 5 offers within 3 days and they told me that they selected my offer over other higher cash offers because mine was the most creative & did the most to help them out in a difficult situation. I offered his full asking price but in addition to my "cash offer" I also offered to pain the lien, to hire movers for him, provide moving supplies, provide a 10x20 storage paid for 3 months. Aside from the lien, it was only ~$2k for everything stated. Since we closed in 7 days and he had so many "treasures" I gave him and additional 12 days to clear whatever he wanted from the inside of the home and an additional 30 days to clear the outside. Anything he didn't want I would take care of disposing myself. This was a bit of a pain for me since there were several vehicles left on the property that did not have paperwork. Anyway, the idea behind understanding the seller's motivations and concerns and then putting together a creative offer to address them is something I learned from the @Brandon Turner book "The Book on Rental Property Investing".