Before and After Craftsman Duplex House Flip With all The Numbers. Did We Make Money?
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- Опубліковано 26 сер 2024
- We bought this property from the MLS in 2018 and sold it over a year later at the end of 2019. It was a cool house, but we went way over budget and over our time frames which cost us a lot of money.
This house had a flood, needed much more work than we thought it would and other issues as well. In the end, it was not worth our time or effort to do this flip, but that happens on some of these. We are constantly learning and changing how we do things even after 17 years of flipping houses!
I bought this property for $207,000 and sold it for $345,000 so you would think we would have made money on it, but you can see at the end of the video if that happened or not. We replaced the wiring, roof, sheetrock, redid the basement floorplan, replaced both kitchens, and bathrooms.
The property had one unit on the main floor and one unit in the basement which could be rented out. We added a lot of value to the property but it cost a lot of money to do so!
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Mark Ferguson’s purpose is to help as many people as he can become financially free through real estate.
Mark has been a real estate investor and real estate agent since 2001, after graduating from the University of Colorado. Mark has flipped over 180 houses and routinely flips 20 to 30 houses a year. Mark owns 20 rentals properties as well including a 68,000 square foot strip mall. Mark is the managing broker and owner of Blue Steel Real Estate. Mark is also a member of the Forbes Real Estate Council.
Mark started InvestFourMore in March of 2013 to discuss his rental property investing techniques. Mark expanded InvestFourMore to talk about his flipping business and real estate agent business. InvestFourMore now has 300,000 views a month and is one of the top real estate blogs.
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You may not have made much money but you kept a lot of people employed and improved the neighborhood. That is great!
thanks!
What an eye-opener! I've watched 'flip' shows for years and they never mentioned the costs. This house is beautiful and I love it. Thanks for taking me alone on your flip.
Our pleasure!
Honesty is rare in this business....especially the TV flippers!! Thanks Mark!
No problem
so beautiful
@Ayaan Noah Cool, thanks for letting me know🤣😜👍
Great content, real numbers, real problems, real solutions. Love the end result.
I prefer the setup for this video how you utilize your whiteboard. Seeing numbers and dates is a great way to get our attention and interest while keeping it business related.
Thanks!
These are the types of houses that I purchase. I live in them while rehabbing them. I usually spend 1 to 2 years in each one and then flip them after completion. I do most of the work myself. I will not purchase any that cannot be lived in from the start of rehab. For me I save on housing expense, utilities, taxes, insurance, security, labor seeing I only have this one location to pay for.
This is a very important video for anybody that fixes things hoping to make a profit or just break even. It makes a point I have said for years. The harder you work...the less you get paid.
Wow. You really went through it. I’m so sorry. Ultimately you made the home so beautiful. If the goal was to beautify the neighborhood it would be a total success.
Wow great behind the scenes video of the true costs. Sure looks easy on TV. Thank You for sharing
Thanks!
@@investfourmore Watching this video in 2021, and i was curious, if you converted the basement into a 3bd 1bth, AND you have the top 2bedroom building, why did you choose to sell, instead of holding the property, refinancing and renting? is it because your LTV would have made you hold too much equity in the house? Thank you for your videos, i have learned so much!
7 mins in and crossing my fingers that you keep the gorgeous built ins...
His optimism is amazing! He is like a super human.. "Oh its not that bad...could of been worse." 😜☔☔☔☔😳😝
Ohhhhhh god, the water pouring in! I would cry to see this in person.
We had a furnace like that. Loved it.
More like this plz!!!! Amazing!
This is fantastic,I would’ve made the front porch all open to show off the craftsman style of the porch charming house
This was an epic flip ! So many crazy things happening, i remember the giant Adams Family's octopus furnace!
That thing was crazy
@@investfourmore Mark, A great house .Thanks for sharing it with us.
Too bad you couldn't save those beautiful old doors. I do love your positive attitude!
Thanks!
It's an American classic!!! It's priceless. No price to high. Awesome rehab though.
thanks!
Thanks for sharing. I just bought a 1910 house and was looking to be inspired. I was inspired by your post
That is awesome!
Rub a candle or a bar of soap on the drawer sliders and they'll open and close easier. :)
Thanks
A solid, straightforward presentation. Thank you.
Glad you enjoyed it!
I know it is an old house but I much rather have it than a new one. It needs a lot of work but when done you have a better house than a new house. We downsized five years ago and went from a house built in 1974 to one built in 1951. I would't trade back for any reason.
Amazing job. I’d love to own it. The older houses have nice surprises around every corner. Love the built ins
Thanks so much!
I had a window in my 1949 house. I replaced it with glassblock. It allowed light in, moisture kept out. And I did take a wall out of my kitchen. I was delighted with the extra eating area. It was really worth it.
That thing in the basement is an antique...!!! Your furnace. I would keep it.
Overall the house came out fabulous!
Looking good after the work you put in!
Thanks! Brady
So true.
That's the coolest furnace! I've never seen open working mechanicals on a furnace.
Right?!
The devil is in the details. Great presentation on the numbers, Something not normally covered in such detail. Thumbs up all the way.
Thanks!
I had a bathroom window that made us feel creepy because of privacy I liked the light, so we put decorative window plastic ( film) on it and now I love it.
Good to see the down side to flipping and know to learn from this, and avoid low outcomes.
You did a nice job on the kitchen expansion. Love that you kept the original built-in. Also glad to see you put a ceiling light in on the other end of the living room. I have always disliked those swag lamps. Really nice job on the basement apartment. Amazing what you were able to do with that. From 1 bedroom to 3 and a much larger kitchen. Rarely do i like the houses with apartments. But, with this one, I actually like it enough that I could even see myself buying it and living there.
i know you unfortunately lost money on this but i still love this flip so much its definitely my favorite
Awww, I am so sorry this one went wrong, in so many diffrent ways. It is such a beautiful home!! For all the efforts and hard work, It is disappointing. If this was someone's first flip, they would never have done something like this ever again.
yes, in hindsight I wonder if we tried harder if we could have strung the electric through the walls and not gutted
@@investfourmore I really don't know Mark, Stinging has worked on an old Farm House that I lived in as a child. That would of made a big difference.
This house turned out beautifully.. Wish I lived in Colorado!
Thank you! 😊
Brenda,these houses were sold in "kits" thru the SEARS CATALOG in the first half of the 20th century. You can find them anywhere. They delivered to a building site with instructions that many owners or builders would use build the house. ☺
Dang! Houses are expensive in that state. I live in Ohio, Warren County and houses are really reasonable.
at 21:30 there is an outlet that is sticking out of the wall
at 27:44 the vents for h w tank and furnace need mortar or grout in to chimney
I really like the total before and afters
cool
Finally i wanted a full video of the craftsman house
Hey Mark, could you do a quick video about how COVID19 is effecting the market and property value in your area? Have you changed up your business model/strategy and are investers shying away from lending money?
Yes, I can do that
Hopefully the driver from Home Depot got disciplined for that
Fired is better.
Wow, this house turned out amazing. If I had the money I'd buy it from you. I love it!!! Great job on the demo Mark. Tyfs God bless you
This is the REAL Truth about Realestate!!!!! Does not always work as expected!!!!! I have lived this nightmare of a flip!!!!!
good and bad
I rarely say anything negative on your videos but damn I’ll be glad when I don’t ever see that tile again!🤣 On a positive note the bathroom configured that way makes way more sense.
Love this house!!!!
Do not remove the window. Bathrooms need good ventilation and a window is perfect for that.
And bathrooms need tissue. Sorry, my sense of humor needs work. I'm watching this during the c virus scare.
LOL you got took on that Dump. ROFLMFAO Wait for the Next Housing Collapse haha. As seen on TV 🤣🤣🤣🤣🤣👍🎩
We have the heat on.....unless you don't and the pipes freeze 😕. A tip on those drawers...rub wax everywhere wood touches wood and they slide like a dream..4 future reference. Glad you made a small profit the home came out beautiful. sure wish it was more.
Same here!
Very insightful stuff. Much appreciate it!
Glad you enjoyed it!
thanks for being honest
Always!
The famous flippers make most of their money making a show out of the process. It's hard to lose money on a flip if you're making 10's of thousands on the show documenting it.
Liked & Subbed, thanks for being honest and showing a true picture.
Wow, cobwebs on the electric panel OMG! You seem so calm but this had to hurt!
We have good ones and bad ones. Learn something new every time
That would've been the perfect house for my hubby and me to retire in - but of course, we don't live in CO! Gorgeous rehab. Would love to have income for my property.
The finished product was great, though. Cute house.
Thanks for showing your less than successful flips. It's interesting to analyze the process and costs. Your experience with contractors and their severe lack of simple common sense - not shutting of water, painting drawers shut - would drive me nuts. There must be such an abundance of work out there that fosters and allows that level of contractor incompetence to exist. Also, it would seem a broader initial assessment would have helped because $345K for a fully rehabbed 2 unit house strikes me as awfully cheap, except that it seems the neighborhood kept the price down significantly. Too bad.
The unemployment here is less than 3%
The old timers that use to take pride in their work are long since retired. My old time carpet boss who taught me to lay carpet in the 70's, told me that the influx of foreign labor would ruin carpet
laying.All we have today are "yardage guys". Put it down real fast and collect. No craftmanship at all.
It looks great. Was in awful shape to start with. What a shame for an ol Craftsman. But if I were in the market I love those builtins, but the drawers appear to still be sticking. It would make me sick to not be able to use them and therefore I would keep looking..
Running is terrible for your knees. Since you are already having pain issues, you might consider bicycling instead. Be proactive!
Very Very interesting. I have a grandfriend who successfully flipped two or three houses and therefore I’m terribly interested. Now I know why he is so hesitant to get involved when there are funny things negatively, showing such as a group of neighbors in one spot who got themselves to be an historic district. And they are mean nasty mean with their illusions of grandeur and the rules that they have set. Much worse than an HOA..
Any update on the house with bad foundation? Super curious how you resolved that kind of issue.
Waiting for soil report
Putting paint on that beautiful wood is a crime.
Its your have the skill and the money to do your own renovation it s gonna be a home run... labor here is $$$... I will love to see the expense distribution labor and materials... it will help to analysis where money's went
Then I have time to do nothing else but renovations
New subscriber what you are showing here is real info for newbies thanks for your sharing. May is suggest use 360° pictures to provide a better tour bf/af your renovations
Glad you liked it!
Just a thought. On large projects, it might be easier to use your own cash instead of financing.
I've been wondering why they use so much financing. I know it's to do more projects but those costs are insane. Like you said maybe he should use cash on the big projects since they take longer.
looks great
Lol that plaster looks more than a little disturbed
Have you ever bought a house to flip and then changed your mind and made it a rental? On this property, it seems like it could've been a viable option.
No, the rent to value ratios are too low here on residential
The thing that caught me was 15-22 flips in one year? You must have multiple GCs you know to run that many in a year or your a huge company that has employed GCs and trades ppl
yes we have a lot of people
@@investfourmore do they work in the same company as you or do you technically hire them all out?
Sorry you had to take such a hit. The home turned out very nice.
Just curious, who picks your tile and countertop patterns?😬
Nikki usually
@@investfourmore You need to re-think these choices - wrong tiles and counter tops - don't suit the house at all , sorry.
THRIFT FLIP FIRE I think he knows what he doing
This is a off topic question but?
What kinds of books do you recommend for investing, real estate, starting a business, etc?
Click where it says "Show more" above.
I have 8 books on amazon!
Mark Ferguson - InvestFourMore Great ,thanks.
I have plenty of time for reading. 👍
Do lenders only lend to those with previous successful flips?
no, not all
Mark Ferguson - InvestFourMore
I have many years experience in construction/Remodeling, I’m a RE agent, I have 10k in the bank and 780 credit. Are you interested in getting together on a flip?
Have you ever thought about just doing a HELOC or cash out re-fi on the properties and rent them out instead of selling?
I have a pink/mauve bathroom and its the only bathroom. 😆😂🙄
Mark, the house and basement are much improved. At least it wasn’t a complete bloodbath and you almost broke even on a bad property. You learned lessons for the future. Just one other comment, were you intentionally channeling Herman Munster?
Damnnnnn ouch.
Mark, you didn’t take into account the repair cost, or was that incorporated in financial cost?
Yes
Are these foreclosures your doing?
You need a new tile guy..the tile work is shoty. No place to put a refrigerator in the kitchen either.
Couldn't have used insurance monies to cover cost of water damage ?
It would hike the cost of your insurance.
@@stargateproductions So really why have it ? I guess its only good until you need it LoL
Too minor of a claim. It did not do that much damage.
Is there a way to figure out who turned off the heat and get some $ from them for negligence? Or insurance?
Looks like Asbestos insulation on your heater.
yes it was
Why not get a hard money loan, flip it, rent it out, get a mortgage and refinance. Pay the hard money loan back and keep your profit as well as rent income
Living above and renting the basement is Income Property style, not Property Brothers. 😄
The upstairs toilet paper holder is in the shower 😳
No egress windows in the basement unit??
indoor rain!HAHAHA
You stand in front of the numbers, you should stand to the side. We can see the numbers.
Ouch that's a lot of money for repairs.
yup
Mark, will the house be supplied with bathroom tissue? The seller could add 25% to the cost.... lol
3 rolls
@@investfourmore mark, I work in grocery so I see it firsthand. Take care, blessings to you and your family.
Every inch of the big pipes on that furnace are wrapped in asbestos.
Please make a video of how you invested in the last recession and how you plan on investing in the current market with the pandemic that's going on
I invest the same all the time! Always expecting something bad but hoping for better
Why wouldn't you have not sold it but just rent it out so you didn't just do it all for nothing? And slowly make money off it that way. Especially cause it's such a great rental! What a complete waste of time and labor and heartache. You lost that contractor. Geesh, Id be so livid if it were me. You must be so rich if this didn't totally ruin your business and life.. It would mine!
ouch!
I can’t understand how you make any money when it takes you that long to renovate houses then sell them and don’t do the work yourselves.
How do you deal with contractors in a state where marijuana is legal ? Is working while stoned an issue? Could that be a contributing factor with the flaky contractors?
Honestly amateur mistake on your part not turning the water of the main if your going to shut off the heat in cold weather if you didn’t know that could happened you shouldn’t be in the real estate business
That was our contractor
14 Months?? Don't count that as FLIP.
Don't call your self a flipper if you don't do any of Roof, Drywall, HVAC, Electric, Plumbing, Kitchen, Baths, Paint, Floor, Windows, Doors work yourself.
You make more profit if you can do these work yourself. The quality of work got to be professional level. People easily notice crappy work.
I had 20 flips going at once so no I didn't do the work myself
you need to fire your barber