Historic Flip - 1st Flip Ever!

I've teamed up with a local General Contractor who focuses on fix-and-flips. We had a successful introduction to each other when he came to bid out a possible flip in my neighborhood. Although that particular house needed way too much work, we discussed our big-picture goals. Essentially, we share a vision of finding homes that need rehabbing and flipping them. He was in need of 'gap-funding', capital, for a house he and his assistant had identified prior to us meeting. 

I've owned my house for 5 years now; by finishing my basement and with the recent housing market rise (about 8% in my area) I found myself with roughly $100K in equity. After diligently learning, reading, and listening to BP podcasts, forums, and youtube videos, I felt taking out a HELCO on my house would be the most efficient way to get into a real estate deal. Putting my nerves aside, I went into my bank to discuss this. It was a very simple and pain-free process and I now I found myself with the capital needed to partner up on a flip project. 

After a couple months of going back-and-forth with details of the flip, we successfully closed on the house on 5/7/18. We immediately went to the house to get to work. We painted our vision while walking through the house as the new owners. About a week prior to closing, we learned that the house is in a historic district. This was interesting to us. After more digging we found that there are government tax credits for rehabbing a historic house. Unfortunately, they have written the regulations to exclude a 'flip', you have to occupy (or rent) out the house for three years before we are considered eligible. Since the house was not registered with the city (it is with the state), we are able to get going on the project right away. 

It has been a week and progress has been made! We tore up the upstairs carpet to reveal the home's original hardwood floors, which are beautiful. We tore up the upstairs bathroom as well. Roofing, siding, and windows are coming up this next week. 

This, so far, has been a great experience with some ups and downs but we are on the right track. I'm new but my partner has been in the industry for 20 years. I can tell, by the way he operates, that he is a great leader and organizer. The first day, the day we closed, his main contractor and the electrician came to give bids. His assistance also made a personal appearance at the house who runs a tight ship! She tells it like it is and give him little slack when his obligations rise to the surface. The team we have is strong and our goals is to be in-and-out of this house within 3-4 months. We bought this house at 35% of ARV at the LOW end and, if this summer is a hot market, we got into this property at 29% of ARV on the high end. 

The better news is, is that my partner is willing to let me come and go as I please (and have time for) to put in my own 'sweat equity' to add to my side of the profit. I can learn while I earn! I do work full time but I plan to go to the house at least once per week to touch base with the contractors and get my hands dirty. This is my first time ever being the 'investor' which gives me the freedom to get my hands as dirty as possible or little as possible. Being a young, excited guy, I plan to show my face a lot around the job site. 

***Update***

We are still in this house trying to get it finished up 

***Update***
This house sold $10K over asking in November 2021 :)