Final Post - First Flip Jornal - Flipping a Burnout, First Flip & Next

My name is Jeff Neal and I am a real estate investor in the St. Louis area. I thought I would do a final post to my first true flip. Here is a quick link to the previous post . 

Long story short it was a huge success. I was able to do a full gut rehab on budget, in about 3 months (Plus 1 month of closing, 4 months to fully finished). When I was about 2 weeks from getting the house finished I put a for sale by owner sign in the yard and got a phone call in one hour. The people in the house next to the house I renovated had watched everything happen and wanted to buy it. I end up selling the place to someone else a week later but was complimented that the people next door that had watched all the construction was willing to buy it. 

The Final Numbers

Purchase Price - $11,500

Rehab - $70,000

Misc Cost (purchasing/selling fees, realtor fees) - ~$10,000

Sale Price - $190,000

Investors Profit (8%APR / 2 Points compounded) - $4500

Profit - $94,000

Conclusion 

I was able to drive for dollars for a few hours, send out 2 letters, get the house for dirt cheap, find a private investor who financed the whole project (after I purchased it), put out all the daily fires of a renovation and get the house sold fast. I was very happy with how everything turned out. (If you read through my previous posts you can get more of the details, Post 1, Post 2 )

What's Next

I am excited to say I have put in my notice to my 9-5! I have a duplex that just leased up fully and is cash flowing $1200 a month (each side rents for $1800), I recently got my real estate license and have been making money from helping other purchase homes. The main reason I can quit and have this opportunity is because I have an amazing wife who has work hard to become a PA. My wife has lived through 3 live-in flips and we took some of our earnings and invested it into our own place. 

Our New Place

Here is a quick run down on our place. We bought a cape code style house that was 1.5 stories with about 1500sf. We ripped off the roof and added a full second story which added about 1100 sf for a total of 2600sf. 

Before:

During:

(Almost Finished) After:

The quick numbers on our place are:

Purchase: $245,000

Rehab/Misc Costs $150,000

ARV ~$600,000! (appraisal should come back this week, Fingers Crossed)

During renovating my house I have hired 7 guys that work for me full-time. We can now self-perform the entire project minus the MEP systems (Mechanical, Electrical, Plumbing)!

Next/Now

I have partnered up with to good friends who were also investing in real estate. We have purchased 3 houses in the last 30 days. One of which could have a 400K+ Profit. We will find out soon enough. Be looking for my next blog post on The Park Ave 2 Story Addition! I think adding a second level to a house might be my new favorite strategy! I'm coining it the BRRR (Buy, Ripoff Roof, Renovate, Resell) Strategy! lol @BrandonTurner Seem original enough to me. 

Jeff Neal signing off.... @JoshDorkin