Complete House Flip Video: Before, After, and $4,000 Profit After $100,000 in Costs
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- Опубліковано 8 лип 2018
- Most of my flips work out well, but not all of them. This one was a disaster and we made almost no money after putting a ton of work into it. You can see my other flip projects here: investfourmore.com/flips/
I bought this house for $110,000 without seeing the interior. It was tenant occupied and the tenants would not allow showings. I thought the house cannot be that bad if there are people living there, but I was wrong! The house was a complete gut job and had no foundation in some areas. We spent a lot of money fixing it up and ended making almost nothing on the deal.
I spent 97k total including the repairs, carrying costs, selling costs, and financing costs. You can see the exact breakdown in the video. We sold the house for $207,900 and luckily I made a commission when I bought it or I would have made less than $1,000 on the deal! I usually make at least $30,000 on each flip.
We also had contract problems as two buyers backed out of the deal. One for financing problems and one for inspection issues. I also ended up firing the contractor I used on this deal because he screwed up working on my new office. investfourmore.com/2018/04/09.... He also screwed up on this house and missed that the back half of the house did not have a foundation. We will not be using him again.
I also go over how we chose one offer over others when we had multiple offers. Even though that offer did not work out. I also talk about a lender who I was scared to use because they tend to mess everything up, and they messed up this deal too. A lot of great info on this video!
I also mention my book sale in the video. You can see all my books on Amazon here: amzn.to/2u4XfmK
You basically built a house. I like how you changed the interior to add another bedroom.
Thank you
What a difference you made! A really nice property too! You did the place proud and folks have got a lovely home. The neighbours must be pleased, too! Respect! XXX
That grey looks light mint green. That’s the problem with grey it can have a blue, green, purple tint to it & sometimes it’s hard to tell unless you’re comparing samples.
Seeing that poor abandoned skinny kitty broke my heart. :(
People do not deserve animals.
You did make a profit albeit a small one but the bigger picture is that you took a horrible, rundown property and made something nice for a nice family to have.
I love this video and how honest and transparent you are. This is 100% REAL! I subbed and look forward to watching your vids.
Chris E. Thanks!
Love your honesty, I'm not a real estate investor or flipper, but looking to buy my first house with my wife as a private residence. So helpful, thanks Mark!
You are welcome!
Time to withhold payment from said contractors until house is done
Some people just does not take pride and their work!!! Because if I was your contractor, I rather tell you, then you find out later on.
This is a great and thorough video Mark. Thank you for showing the numbers. My first attempt at a flip went very similar to this with four attempted buyers. Cost a lot of money and I was feeling like I had failed. I did another and it went much better. I'm still very new. Also, nice job on the new floor plan. You brought the neighborhood up.
Thank you
The yellow house is beautiful. Very inspiring.
Thanks!
WOW ! Cannot believe how many offers !!
Congratulations on selling your happy house finally. I'm in the process of buying a foreclosure property and I am learning all this new. Thank you for your advice.
Good luck with it!
Really love the before and afters in one video. Really interested in seeing the numbers at the end. I am not gonna do flipping soon, but I am buying my first rental in a week. I am now 19yo started with my real estate agent career one day after school. Already had a scholarship to study law, but instead of working for money I want my money to work for me!
Congrats! and thank you
We learn so much from videos like this, thanks for posting Mark!!
You are welcome!
I just can't believe that someone was living in that house in the condition that it was in. I also can't believe that houses are so expensive in Colorado. If you had bought that house in my neck of the woods (Opelousas, Louisiana), you probably would have paid it 30 to 40 thousand for it
I absolutely love the yellow! For some reason, on this particular house oh, that is just the perfect color! Maybe it's because the weather is kind of depressing. But like I said it's beautiful! :-)
Good point on the escalation clause lol Thanks for sharing both the good and bad deals!
You bet!
Thank You. Appreciate your honesty and showing the 'not so great' flips. Maybe some peace & gratitude for you that you provided a nice house for someone to live in? I'm a newbie to this subject & learning a lot from you.
Thanks!
I like the before and after videos together. Good choice
Nice
Great flip Mark Ferguson! And great news about kitty too!!❤️❤️
Thank you!
Love the house! Y’all did a jam up good renovation job! So clean! I imagine beautiful flower beds and shrubs in the yard and I think the train adds to the charm!
Omg thank you so much for these videos!!! They have helped tremendously with estimating repairs I even find myself guessing the repairs before you say it and its spot on! I'm getting better at this lol.
Good to hear!
the kittens were the best thing in that place... looked like a battle zone.. and it's like a miracle now heheh nice
Great to show the bad deals as well, makes you authentic and real. We all can get the feeling of flipping.
You did accomplish improving the neighborhood and removing a derelict house from the neighborhood.
What a tough one! Now the next 10 will seem like a piece of cake. Great play by play. thx!
Jeremy Keefer hopefully! Thank you.
Completely understand the contractor frustration. In management of properties that is my most difficult challenge. I have gone through a few….At the moment I have two really good ones that do what they say they’re going to do and they finish on schedule 👏 …..
The yellow is nice. Kinda reminds me of my house when I bought it as far as the foundation is concerned. Our house is a pier and beam house and there was absolutely zero support in the living room. That was 25 years ago. We’ve since added 1000sq ft onto our house.
Garden Novice Farm thank you and nice work
love your videos! Super fun to see the ins and outs.
thanks1
Aww man, yu are such a solid dude!!!! And I absolutely love the yellow house!! Fine n happy choice 😊
Thank you!
Thank you for sharing this experience! So important!
You are welcome!
Thanks for showing the numbers. I am learning so much from watching your videos!
You are welcome!
That turned out cute!!!!! I really like your color choices, inside and out.
Thank you
Most honest house flipper on youtube. Good luck, Mark!!!!
Thanks
Poor kitty is hungry. Why do people move and just leave their pets behind?
I should have mentioned that is now Nikki's cat and it is not hungry anymore
Mark Ferguson - InvestFourMore awwww!!! I love a happy ending!! Nikki, you are the best!!
Mark Ferguson - InvestFourMore Aww, bless her heart!
Jean Fields
I would've cooked it and ate the cat since I'm hungry
Jordan That’s ridiculous!!
Everyone knows stray cats don’t have any meat on them. 🤪
Great flip! I adore the yellow.....in Miami😬
Thank you for all the valuable info!
I feel your pain. I bought my first flip like 5 months ago and still not done with it. Foundation, plumbing, electrical, everything complete gut. In the middle of it and still won’t make money on it I believe. Learning a lot though!
That is no fun, good learning experience though
at least you're honest about it. I will give you that
Great work so satisfying
Thank you! 😊
Certainly understand the contractor frustration. I had to go through quite a few to finally get two good ones that do what they say they’re going to do and finish on time.
Wow you had a hell of a time with this one!
Yes, glad to be done with it!
Thank you very much for your honesty!!!
Always!
Thanks for sharing this type of experience too. A real 'learning experience' I guess, great that it did not end up a loss. Many of Colorado houses without basements?
Most have basements
Nice job. Love the interior wall colour, but ceilings should be white and in flat paint. Makes them look higher :)
Another issue with that contractor is he did not like to listen to what we wanted.
Hated the yellow color at first but by the end of the video I liked it. Good choice!
Thank you
The house looks amazing
AMAZING! I can't believe it is the same house. Of Course it isn't! I know it's about making money but saving a 100 year old property is pretty fantastic. Colors are perfect. Very happy little house now sort of that French country feel.
Thank you
I like your videos, you tell it like it is...the good, the bad and the ugly. Which this house only had the bad and the ugly, not much good. I really like your videos that why I subscribed a while back, keep up the good work!
thanks!
What a huge difference
great content man! I just watched like 5 back to back lol I'm a new real estate investor in the Seattle / Tacoma market
Nice! glad you enjoy them
If I was buying in your area, I would just buy your properties or flips , great to have someone doing all the work and me buying to rent or use for myself, your buyer just had a windfall a new/totally redone older house , move-in , no headaches...lol
Hate the paint color, but I LOVE the changes made. So much better design - functional. I love the sewing room in the utility room. ;)
Love it Mark, you're adding real value and we really appreciate you keeping up with the videos!!
Frank Eimiller thanks Frank!
Colors are so dangerous. Color everything to attract as many people as possible and make sure you don't scare people. Yellow outside will scare many people. Should have done white, gray or baby blue. Interior should be 9010 white all walls. A light warm grey for cabinets and trim. Done.
I'd run from a baby blue house, but would love a yellow house. Interior I hate grey on anything unless it is tinted warm. Wals inside pale tinted off white, creamy vs stark white.
Will you do any more sight unseen deals?
Im sorry this one went bad for you. You deserve more then 4k for the work you did! Hope the next is better!
Yes, I have bought many site unseens and it averages out in the end
nice reno, it would be cool to see some of the contractor work during the in progress part of flip. also when is the primary residence tour coming
Trent T the contractors don't enjoy it very much when I film them.
The finished product looks great. Thank you for sharing the highs and lows of buying and selling real estate.
cheecheedivine thank you!
Great job, and learning experience😢
4% return, wow you're a genius. Buying at the peak good luck with that.
They aren't all winners. Yes I buy all the time and this was a couple years ago.
you made this horrible house into a lovely place the bright yellow on the outside is a definate no! but it is amazing it turned out
Loving the content! Do you see any value in doing garden redesigns and fencing work?
Depends on the house and the cost. As well as the time of year
FOR ALL SELLERS!!!!! Please listen to what he says at the 18:55 mark. Using the “highest and best offer” jargon really does scare away potential buyers. Switch up the verbiage a bit and you’ll be fine. Don’t make the conditions seem as if you’re money hungry.
true
I don't see the train tracks as a downer. I see them as a novelty.😄
Seems they have a good housing market in Colorado !
It’s the yellow paint !! But even so, so many problems !
Now doe houses sell better if they are staged ? I had buyer back out !!
Meantime we got a chance of house we. wanted, so after all that work making house nice inside and out ! Ended up my daughter is renting my 4 bedroom house , we staged her condo , took photos etc. she moved in to my house ! We left photos in each room and it sold right away ! I was rushed into my new house ! But that was over 12 years ago !
And I still haven’t found some things !!!
Buying this house , and other Agents did no work ! We found the houses on our own !!
Selling a previous. Home in GA we sold it to a niece of my Avon lady !! But Agent again got fixed commission ! You. Will hate me but I don’t think it’s fair that agents get a fixed percentage !! They nearly all show listings on their site, and you look through it and then tell them if any interest you ..... none of my agents had to bust their butts ! But were nice people .... still I did resent them getting fixed commission ......
Wow! Great job. but not crazy about the yellow lol
Right?!
Ouch that’s a huge hit. Unfortunately a replacement home wouldn’t have fit there very well. 👍👍
Mike's Channel we still made money. My first contractor wanted me to tear it down and put a modular up. That would have cost much more money.
please be kind that little kitten is starving you can hear it in her cries. please buy her some food. and give her water. you seem like a nice man so please be kind to this little kitty
Nikki adopted him
Have you considered going to a local trade school and hiring people right after graduation? Then they don't have bad habits and only work for you and you can be the GC.
I have thought about trying to hire people straight out of school. I have not looked for any local trade schools though.
I knew that fly was fake and, at the very same moment, it still shocked me. 😏
What is the interior paint color you used? Great house flip too!
Not sure
This, this is why i subscribed. You are fucking amazing
Thanks!
I love your idea of dealing with contingencies on the buyer's house selling. I'm not sure how one would market a property while its still under contract, as you cant keep it active in the MLS if you're a realtor as its against the code of ethics, even if all parties agree to it. I could see how it can be done with a private party
you can list a property as first right in the mls which means a contingency is in place.
Mark Ferguson - InvestFourMore oh that's very smart. I don't think our MLS in Tampa has that as a status option. Thank you for the insight
Nice recovery. Was that stucco over some older siding i saw? Did you tear it all out before putting the new sheet siding? Ive never had that siding before is it the best way to go for that area?
It was stucco before. I believe they pulled off the old stucco. Stucco is fine here if it is in good shape.
Mark, do you encounter squatter situations, even though you are in middle-income price areas? I was just wondering if this was that kind of situation especially with the electrical wiring. How often do you really buy sight unseen?
Very rarely
That house was a shit hole with a weird layout.
Looks a lot better. But ....the colors.🤭
I'm not feeling the colours either..
None of them..lol
I feel like in some cases - like this one - you might have made more money just demolishing everything and building a brand new house on site, lol. But hindsight is 20/20.
We definitely did not know how bad it was
What are mineral rights? Did you say you sold them?
I understand the want of saving money on a flip, especially one where you bit the bullet hard, but that huge blank wall with one off-set window in the front looks super awkward, would it have truly cost that much more to add another window to that front bedroom and even that out? Also, the siding. That crappy particle board siding is gonna rot within 5 years time, I’d have gone with vinyl at the least. Otherwise, the renovated floor plan is WORLDS better, you’ve breathed new life into this old home, and overall, I say excellent work. 4 out of 5 stars in my book.
I hate vinyl. It cracks and breaks after a few years as well especially here with hail we get
Mark Ferguson - InvestFourMore that’s true, I forget you’re in Colorado.
@@investfourmore I live in KS. What is the best siding for a house - not a flip but my home?
He only made 4K got to save cost I would of been crying lol
How much do you typically sell the mineral rights for? How is that usually allocated?
All depends on the area and what minerals there are. Could be as high as 20k an acre or nothing.
I'd like to ask who is the lender you don't like, but maybe it'd be better to ask which lenders do you like?
investfourmore.com/real-estate-investment-lenders-funding-resources/
I saw your numbers $4,500 for roof very good price around me 12k - 30k, tax for almost a year 5-10k
For a roof?
I think most of your viewers would agree, very few of us being charged less than 7k, most in my area pay 7k to 15k for an honest roofer, you can call Sears or one of the high pressure sales guys and they will ask 15k and up.
wait....why did you sell the mineral rights? Holy Cow! On a residential?
Mineral rights?.. if you buy the house and land and sell it once you sell that land shouldn’t the owner own the minerals? I am not some owner but 1-how do you know if there are minerals on the land, 2- do these rights cost more when buying your house & land?
They can be sold separately. Yes they can make the property worth more. You have to do a deed search for minerals
I have to ask.. What did you do with the cats?
Jennifer Ratcliffe nikki took the tame one.
Mark Ferguson - InvestFourMore awww! That's so sweet!
lots of work little reward
Its a numbers game. Good and bad ones
Did u save the cats?
If you make $30k that super duper good especially if you roll that profit into another investment property!!!
Maybe not much profit but good learning experience
for sure
So if you bought the house sight unseen, then I suppose you did not get it tested for meth contamination either.
Are all your properties in Colorado?
Yes
Are those walls blue? Or is that just a shadow
a little blue
Wow so they just built the house on the ground? Wouldn't that violate codes?
Now it would, but it was an old house
You said something about mineral rights. Please elaborate.
Homes have mineral rights separate from the house in Colorado. They automatically fo with the house if nothing is said about them, but you can exclude the or sell them if you want.
Why use hard money on so many flips if you have the money to 100% self- finance on fewer flips? I would think that the interest, time, hassle savings would be worth it to self-finance fewer deals. Especially if the market turns, in hard money situation you could get caught in negative equity and have to bring money to close, or payoff lenders after close, on a deal like this (if financing repairs). Is the extra income from leverage really worth it? Sorry, but honest question.
Yes, I can do 3 times as many properties. I make $30k on each flip and would make 35k to 40k if I did not finance. So I would be saving $5k to $10k on financing costs and costing myself $60,000 in profit on two more deals. I did not use hard money on this one.
You should of had a priest go with you to check out that house lol !
lol
Where did you put the furnace in the attic lol
You did an awesome job on the house
Yup!
Patricia Chavira thank you
I'm so made all u made was 4,000 of this beautiful property. You really turned this ugly thing into a beauty
Humans will willingly live in some the most horrific looking and dangerous living spaces you can imagine, something to keep in mind. Least wasn't as bad as one house I was checking. The floor literally was sinking with every step and had obvious mold everywhere inside. Who ever ended up buying it just tore whole thing down and had start fresh.
True
That yellow... just too much
Are mineral rights a big deal in your state?
Yes, worth from $5,000 to $15,000 an acre here. Varies by county though
@@investfourmore Wow! Id be sitting on a gold mine right now if that were the case in Wisconsin!