I Almost Lost $100K On This House Flip (DON’T Do This)
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- Опубліковано 11 лип 2024
- House flips are easy, right? Take an old, outdated house, throw on some new drywall, and get ready to collect cash! We wish house flipping was anything close to that simple. Even veteran house flippers like Tarl Yarber mess up from time to time-often through no fault of their own. Whether it be inflation impacting your costs, supply chain breakdowns, or contractor shortages, a home run flip can turn into a hellish return in the blink of an eye.
But that doesn’t mean you can’t make money off a bad situation. Tarl did just that. Although it took him over a year to take home a payday of only five thousand dollars, thanks to this wild housing market, he dodged a six-figure bullet that could have ruined not only this real estate deal but many more to come. Thankfully, Tarl isn’t scared of showing us all his mistakes, because behind the mess-ups are a whole lot of phenomenal deals done.
If you’re flipping houses, trying out the BRRRR method, or doing any type of forced appreciation in 2022, please heed Tarl’s words. You could get caught with a major loss when playing around with the market, and it could sting so hard that it knocks you out of the real estate game entirely. If you’re going to take one thing away from this video, it’s to NOT make the same mistakes Tarl did.
00:00 SO Close to Losing $100K!
02:02 Before Photos
07:25 The Old Floor Plan
09:20 Initial Numbers
12:42 Where We Messed Up
14:51 The New Floor Plan
17:55 After Photos
19:55 Final Numbers
22:43 The Market is Shifting!
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The 5-Minute House Flipping Spreadsheet That Saves WEEKS of Time:
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Connect with Tarl on BiggerPockets:
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Follow Tarl on Instagram:
@tarlyarber or / tarlyarber
all i hear is Tarl in my left ear...in one ear and out the other? lol his mic settings need to be fixed.
Thanks for sharing. Your spreadsheet looks great!
Thanks Tarl, you are always providing straight to the point, in depth, unbiased content supported by actual numbers.
Someone that your colleagues on BP channel can learn from!!!
Thanks for sharing the value!!!
Thank you for sharing!! I need to get excel sheets like yours to track my numbers better!!
Thank you so much for sharing. Very informative! I am in a similar situation. I decided to rent the unit for now.
Glad you were able to share this to your community! Thanks for the warning!
Thank you for the information. 🙂
Thanks for being vulnerable. Many investors only share their wins
The reno looks great Tarl. In addition to the $5K you made, there was additional value that came out of this project that I think most investors would completely overlook: that is that you added value to the neighborhood and contributed to the greater good of the community by enhancing curb appeal of a run down property. Most investors don’t look beyond the tips of their own noses (or should I say their P&L sheets) and don’t even consider how their project folds into the greater community, for better or (oftentimes) for worse. I cant count how many times I have seen a new reno that is architecturally incongruous with the streetscape or neighborhood (in my market, a cheaply done builder-grade among historically-influenced homes), devaluing surrounding properties, and that is sad to see. This project looks great, fantastic job, and I used to live in Tacoma down on N. 10th near Old Town so I can imagine how this one gave the neighborhood a leg up.
Thank you for sharing. I’m about to embark upon a very large scale rehab of a dilapidated apartment complex, as a novice investor. I plan to rehab and hold/rent. Will you please share the rehab calculator you shared at the end of this video?
Great video with the numbers
FYI all the audio is in the left ear for some reason on this video
dang brother. appreciate you putting this out, but this was hard to watch... it was either a monster screw up, or there was literally no decent value add deals available in your area. thanks for sharing the wins and losses.
Question, would it cost less to do all new construction of the same thing instead of a huge rehab? Also, did you pay too much for the property up front? Thanks
rip right ear
Haha
Sounds like you we're string right next to me
Can you share that excel sheet Tarl?! Pretty please 😅
Where can I find this calculator
1 thing you could of done that I made the mistake of not doing, studio above the garage. That could later be rented.
Why are you exiting deals like this?
This video is muted. Please fix.
It’s not. Same thing happened to me this morning while AirPods. We’re you wearing any earphones ?
Only the left side is working - it's not stereo.