Great Day BP!.
Wanted to post my 1st actual flip. My wife and I have flipped a couple of our own houses but this was my first unoccupied flip.
The Property is a 2/2 Villa located in Ellenton, Fl. I found this property on and online auction and lost out on the first round of bidding but when the property came back on we went for it. I went in with a partner, a friend for many years, who came with the cash to purchase. Our all in price with all fees was $53,843 and we closed on 10/18/2019 and plan was to do the entire renovation ourselves except HVAC.
I'm a weekend warrior and comfortable building, rebuilding or fixing anything and my partner had some renovation experience. We both work full time so my schedule was a little more open since I travel and then work from home so my time was going to be nights and weekends. My partners schedule was tighter since he has a desk job and a newly divorced father of 2 teenage boys.
Initial walkthru put us with about $15,750 renovation budget. This was a total cosmetic gut with no major wall removal so we had a pretty good understanding of what the costs would be. other financials were 3 months holding costs of $1,750 (ins, elec, hoa fees)
here are some before pics. Condo was vacant for a few years but we were pleased with the condition and amount, or lack of, active mold.
as I said it was total gut.
Our Renovation included
HVAC
Hot Water Heater
Ceilings stripped
Moulding
Floors
Cabinets
Tile
Vanities
Toilets
etc...
it was everything.
Although my wife was planning on putting it on the market when we completed (she's a realtor). I decided to put FSBO on Zillow for $99k and during the renovation received a few calls from Selling Agents. Initial ARV we put on our sheet was $94k and this was based on comps but since we were a complete renovation we felt the $85k and $90k were not as nice and thought we could get more. during the reno 2 realtors came by but nothing. Then we got a strong hit and that was from a realtor whose client had looked at purchasing when it was up for auction too. They walked the property and made us an offer on the spot. We accepted the offer of $94K! on January 4th, and we were only 1/2 way done with the renovation. They were in a time crunch and needed to be in by February 1st so it was double duty to get this completed. Although they tried financing, it was going to be a cash sale. We had the tile work done, cabinets were in, painting was done but that was it.. The buyers liked how good it was looking so far and trusted our work and couldn't wait to see the finished product.
Here are some after pics:
sorry pics are sideways.. Don't know how to adjust them in the posts!.
final numbers
our total all in $67,448
total profit after we paid the agent 3% and other fees was $21,018.54
we split 50/50.
lessons learned:
you definitely find out alot about someones skills when you work with them. I struggled with perfection on the project and not 100% happy with the outcome but sometimes you just need to let the other person do the job whether if it is how you would do it yourself. That was by far the hardest part. It was small things like messy caulk work or not centering the draw pulls.
I learned about cost of projects factoring my time and what it's worth. For Example I scrapped, sanded and repaired all the walls and ceilings myself, along with painting and it took me about 30 man hours. I received a bid for $3300 so was it worth $100/hr? Tiling was another one. The time it took me to gut the showers, install board, tile and grout was around 23 hours. Not sure what this job would of cost but at least I know what my time was worth on the job.
Well during the process I also wanted to try and do a flip by myself, without the partner, to see the difference.. I kept my search active on the MLS and Auction sites and found one. I purchased the same exact unit a few building down and I bought this one for $10,000 cheaper so I have a buffer to contract out some jobs and "knock on wood", make decent margin!
Thanks for reading and Thank you Bigger Pockets for kicking me in gear. Thank you to my wife who didn't want to live in another flip and we purchased brand new in 2018 and I've been bored, so I decided to start up a flipping and buy/hold business!..
MATERIAL LIST
J&K Cabinetry, RTA cabinets located in Orlando
IKEA countertops
Tile and other supplies mostly from Home Depot
Doors from Habitat REStore
HVAC from Parrish Heating & Cooling
Used appliances (I'm installing new next time, used wasn't worth the savings)