Sep 21, 20233 min read

FIX & FLIP: Summary & Final Results

Flip - Post 10 of 10

View our week-by-week blog post series here

Summary

Purchase Summary: The purchase was smooth and easy. We deposited earnest money of $5K with a promise to close in 4 weeks. During the escrow period, the seller allowed us to begin demo'ing the property 7 days early in exchange for an additional $25K of non-refundable earnest money deposit.

Renovation Summary: The renovation went according to plan, with only a few inevitable hiccups. Several include:

The dishwasher couldn't fully open because the standard-depth refrigerator was too big - we swapped it out with a counter-depth version and our problem was solved
The entryway flooring never fully leveled, despite our best efforts; still, the buyer wasn't deterred and didn't care
The slider door locking mechanisms failed on the day showings began and the contractor had to make an urgent repair

Sale Transaction Summary: As we completed construction, the market shifted and slowed quickly. Further, several competing properties were listed the same weekend as us - and at slightly lower, more attractive price points. Finally, we experienced our share of bad luck with buyers. Events in our sales timeline:

Listed for $280K on the MLS
Nearly went under contract for $285K before showings began
Went under contract for $280K after the first weekend on market; buyer got cold feet shortly thereafter
Reduced price to $275K after a weekend of no offers
Reduced price to $268K after another weekend of no offers; went under contract immediately thereafter
Negotiated $1.5K in inspection items
Closed on property for a final sale price of $268K

Final Results:

Gross Margin: $268K-$180K=$88K (target=$100K)

Total Timeline: 15 weeks (target=10-16 weeks)

Evaluation: Even though profitability didn’t quite reach its target, the flip was a success due to: the knowledge gained, connections made, and the investment still paying off.

A special thanks to our partners at Denver Property Flip, who oversaw the construction process.

The Flip Summary: Week by Week in Photos

Videos & addtl detail are available on the Week by Week Blog Posts here

Day 0: "The Before" Photos

The property was dated in almost every way, except for a furnace and air conditioner which were both less than 5 years old. The property was well maintained, just old. A fresh face lift would transform this property, incl. new kitchen, bathroom, flooring, interior paint, popcorn ceiling removal, appliances, doors, fixtures, and hardware throughout.

Day 1: Demo

All unnecessary components were removed and staged for disposal the next day in a roll-off dumpster. Kitchen cabinets, appliances, flooring, tub, and lots of drywall were included in the demo.

Week 1: Popcorn Removal & Stage Construction Materials

We completed the demo and removed the popcorn ceiling in most of the condo. We also staged all the construction equipment and materials for the project.

Week 2: Cabinets, Open-Up Kitchen, & Bathroom Tile

We installed new shaker kitchen and bathroom cabinets, opened up the kitchen pass through, added tub and tile surround, completed the "de-popcorning", staged a few more construction materials, and prepped the bedroom closet.

Week 3: Doors & Ceiling Skim Coat