Hi again, this forum has changed a lot in 10 years. I was a member back when the forum was the old style message board format. I joined in 2005 when I was 23 and was looking to flip my first home. I did end up flipping a single family home, failing majestically in the process. I bought a probate in Long Island for $385k with zero down that needed way more work than I should have taken on with my partner, as a first flip.
Everything in the home was changed. We replaced the roof, and then 25 sheets of plywood under it that had rotted out. We took out wood paneling on the walls that had 3 layers of smoke infused wall paper beneath it (really should have just ripped out the drywall...). The electrical system had to be upgraded. The kitchen was gutted, flooring redone (refinished hardwood and tiling work in the kitchen. Ripped out an old aluminum awning & enclosure on the back patio. Put in a brick walkway. Filled a 40 yard dumpster. Replaced 23 windows. The list goes on and on, it was a full reno.
I had a chance to sell it at $450k FSBO and I blew it, I read some terrible negotiation advice and instead of following my gut, I listened to the bad advice. Had I sold it at $450k, we probably would have made around $5k/ea but instead we ended up having to sit on it for about a year, and sold it later for $410k, to the same buyer. On top of that, we had to pay the neighbor $10k due to some property line issues and laws in NY. So we lost $40 or 50k, plus the difference in rent vs. the mortgage. We had a zero down full interest mortgage and taxes on the property were $13k/year. All in all, I probably lost around $40k myself.
Believe it or not, I do not regret the experience in the slightest. In the grand scheme of things, it was a drop in the bucket. I learned an incredible amount in that short time and it made me a stronger person. I've since been very successful climbing the corporate ladder and I've had some incredible years, especially over the last 5. The only reason I didn't continue in real estate at the time was because I moved across state lines multiple times the last 10 years (about to move to Indy) and I focused on my current career path rather than learning new markets over and over. Now that I've essentially achieved my goals, I'm ready to get back into the real estate game as I sell my current home and pull out my equity which would give me plenty to throw down a few down payments. I've also made some great connections with some possible investors over the years through work and friends.
The next few months I plan to re-educate myself. My goal in life is to be financially independent and give back to the community in areas where I've benefit from. I've listened to the last 10 podcasts (and continue to work my way back), attended my first BP webinar, started picking up some good books recommended from the podcasts, and am working on making new connections in the Indy area. After I decide on a target area and can clearly articulate the strategy I would like to go with (leaning towards multifamily rentals at the moment, possibly BRRRR method to start), I'll start making offers. I'm looking forward to being back in the game! If you're from the Indy area, feel free to say hi!
Found the old pictures if anyone is interested (pre-renos, also pre-imgur...): https://share.shutterfly.com/share/received/welcom...
Only after picture I could find:
