How This House Flip Went Better Than I Planned
Editor’s Note: Mark Ferguson of Invest Four More loves educating people about what being a real estate investor is really like. In this special Guest Post, he walks us through a recent flip that ended up better — although more challenging — than expected. Spoiler Alert: This isn’t what those reality TV shows will tell you!
In June I sold a flip for $279,900 that I had bought in February for $183,000. I made a decent profit on this property and more than I thought I would originally make. There was a huge spread between the purchase price and the selling price, but there are also many costs when flipping houses. While I did well on this flip, I did not make as much money as many would think based on what house-flipping shows teach you.
In this case study I will go over how I found the property, how I rehabbed it, how I financed it, and what all the expenses were. I will also talk about how we found water getting into the basement in four unrelated ways, which we had no idea about when we first bought it.
How Did I Find This Fix-and-Flip Property?
Many people say you cannot find good deals on the multiple listing service (MLS), which is simply not true. There may be fewer deals on the MLS now than there were five years ago, but there are still deals. I live in Colorado, which has one of the hottest real estate markets in the country, and I still get deals from the MLS. In fact, the MLS has the lowest inventory of houses right now, and I still found this house on the service in the following manner: