My First Fix & Flip Home
My very first investment property was purchased in 2005 and my wife and I purchased it for $150k. It was located in Seminole, Florida and we purchased it a few years before the big economic bust. Everyone and their mother was purchasing homes to flip back then so we decided it was our time to get in on the action. It was a small success. We spent about $12k on the remodel and cosmetics which entailed painting both, the interior and exterior of the home, removing some wall structures and enlarging a room, total kitchen gut and new cabinets and stainless steel appliances, new carpet and wood laminate floors.
My wife and I performed almost ALL of the work ourselves and finished within 24 days. We earned a profit of approximately $15k after we sold it. But that was was an exhausting $15k being that we spent hours after work and every weekend of our time working our butts off at that house with me even doing the framing and drywall that it took to relocate some walls (By the way, I have a couple years of professional drywall finishing under my belt).
After this flip we determined that if we wanted to keep doing this, I would have to quit my current career in order to do this flipping business full-time. That would mean I would have to sacrifice the current income level that I was currently at as a dealership Parts and Service Director and in-turn that would mean we wouldn’t qualify for another mortgage in addition to our current home that we lived in, so that wasn’t going to work. You see, at that time my wife hadn’t reached her current career position as a professional executive so I was the “bread-winner”. Now, she is!
Looking back, we made the right decision because the housing market tanked just a couple of years after that.
The experience I gained by this first fix & flip was tremendous! Sure it was a little scary at first thinking about holding down two mortgages and hoping we had the eye to transform this home into something that would be desirable to someone looking to buy in this neighborhood and making the home more appealing than any other home in this neighborhood with the least amount of money invested into it. We walked away achieving this goal and looking back, I learned important lessons
- Don’t buy a Fix & Flip home that requires more than cosmetic work if you have a full-time job.
- If your Fix & Flip home needs more than cosmetic improvements, make sure there is enough potential profit in it to hire people to do the renovations and work for you.
- Make sure your Fix & Flip home has some of the renovations already done to it, such as a new roof, new air conditioner, remodeled kitchen or baths.
- Don’t get caught up too much about the home having new appliances, these can be purchased afterwards and can be very affordable, unlike a new roof or air conditioning system.
- Don’t buy a home and think you don’t need a home inspection. Hire a professional inspection company to inspect your Fix & Flip home even if you are a professional. This will give another set of eyes looking over you home just in case you missed something.
- Make friends and get tight with a real estate agent.
Here’s a related video tip: How Much Can I Make Fixing & Flipping Houses