First Flip: By the Numbers

This was my first flip! It was a lot of fun, but A LOT of work. My dad and I did most of the work, and we put a lot of sweat equity into it. We hired a few things out like the plumbing and electrical, and some of the painting, but that was really all that we could afford. 

We also learned quickly how important it was to have a team before you get a property under contract because we wanted to hire a couple other things out, but had a hard time getting contractors to keep their appointments, and to show up to do the things they said they were going to do. As a result, we had to do more than we expected, but it turned out okay in the end. We learned a ton, and it was really encouraging.

So, I bought this property for $25,000 and was able to get it seller-financed at a very low 6% rate, amortized over 10 years, and I only had to put $12,500 down. I ended up putting another $12,450 into the rehab and then sold it for a gross profit of $41,234, that was after I paid the agents their portion of the sale, and after I paid all the taxes and insurance. 

So, I profited $13,625. After taxes, that looked like $10,218, which was a great payday for a first flip, and especially considering that I really only put $12,500 into it. The rest of the money was put on my credit card, so I got over a 100% return on investment.

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