Success Stories
Larry's Success Story
By
May 4, 2005, 12:34

LARRY’S REHABS AND FLIP

After retiring a few years ago, I decided in 2003 that I wanted to give real estate investing a try since I always enjoyed working with my hands and fixing things around my own house.  I purchased and read Steve’s course on Rehabbing for Big Cash and then started looking for my first deal.  It came in July of that year when I purchased a 1935 brick Cape Code home for $84,400 (including closing costs) through a bank foreclosure realtor. The house had a critical structural problem with the two story brick porch in the rear of the home.  I believe the structural problem was the reason that other rehabbers bid down their offers and made the property available for me.  Additionally, the roof had several large holes resulting in interior water damage especially to the living room ceiling.  The roof was replaced; new drywall installed; the kitchen and two bathrooms were gutted and completely redone; and a new hot water heater, new furnace and central air system were installed.  It took 7 months to rehab and my soft costs were $43,400.  In February 2004 I sold the house for $150,000 and made a profit of $22,200.

After attending Steve’s Boot Camp in October 2004, I left prepared to try my first flip.  This past February I bought a 1920 concrete block duplex from a motivated seller who originally bought the property to rehab but later decided he was too busy with his primary business to tackle the rehab.  So I attended a real estate club meeting and struck up a conversation with another rehabber who was interested in possibly buying it to fix as a rental property.  The next morning we toured the duplex, signed a sales contract two days later and closed two weeks after that.  I purchased and closed on the house for $25,200, had $500 in carrying costs and sold for $43,600 with closing costs deducted.  It took one month to make $17,900 ?not too shabby at all!

My most recent project was a rehab that I purchased from another rehabber who needed fast cash to pay back taxes.  The dining room ceiling had collapsed from roof leakage necessitating a roof replacement including new vinyl soffits, rain gutters and down spouts. A poor condition back deck metal awning and window awnings around the home were removed mainly to increase natural light into the home.  All the major items inside, kitchen, bathroom, furnace, air conditioning, etc, were all replaced.  When all was said and done, I spent $31,300 in rehab and other soft costs over six months.  The house was bought for $75,500 and sold for $136,700.  My profit was $30,100.

Currently, I am pursuing a short sale on a home next to the rehab I just finished.  It has the potential to reap the same, if not better, numbers.  Thanks to Steve for writing his courses and teaching at the Boot Camp ?all very helpful with my real estate ventures! 

Larry

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