Honor & Equity: A real estate investing resource for military members, veterans, and their families

Our First Flip: By the Numbers

The lead for our first flip, which we refer to as “Dirty Diane”, was produced through our off-market deal funnel in July 2021- and it is not exaggerating to say that it resembled a house from the show “Hoarders”. Aside from the obvious need for a deep clean, it was a 3 bedroom/1 bathroom, 1062 sq. feet built in 1950 with good bones. The numbers pointed toward it being a good candidate for a flip (forecasted monthly cash flow was not ideal for a BRRRR). After our team on the ground visited the property and we obtained a contractor’s estimate for a full rehab, our expected ARV was $115k-120k with the one caveat being that we had to install a full new HVAC system. Due to issues with the title, the closing was delayed by about a month and we secured the property on August 25, 2021.


Purchase Price: $60,000

Closing Costs: $2,104


This house was funded through a private loan at a 10% interest rate. Closing costs include standard title and administrative fees. 


Rehab Costs:

-Estimated $25,000 ($18k cosmetic + $7k HVAC)

-Actual $26,933

-Estimated Time to Rehab: 4-6 weeks

-Actual Time to Rehab: 10 weeks


Scope of Work:


-Replace all doorknobs and hinges with new brush nickel knobs, including striker plates. 

-Apply a medium knockdown texture to walls and ceiling 

-Remove and haul off all trash and debris

-Remove and haul off all carpeting 

-Seal all subfloor with an odor-neutralizing primer

-Prime all raw drywall and texture with a PVA primer

-Paints walls, ceiling, trim, door jambs, window casing, and door casing

-Lay 1,000 sq. ft. of LVP Flooring throughout the house with matching transitions.

-Replace all electrical outlets, plate covers, and switches.

-Add a new HVAC system



-Replace window blinds with 1″ cordless vinyl blinds

-Repair drywall using 1/21′ gypsum board

-Hang 1/4 drywall existing ceiling tiles. Finish and texture.

-Replace ceiling fan

-Replace window sill



-Install new butcher block countertop

-Replace sink faucet

-Prime and paint cabinets

-Replace light fixture

-Replace window blind with 1″ cordless vinyl blinds



-Replace window blind with 1″ cordless vinyl blinds

-Replace light fixtures with ceiling fans

Front right Bedroom

-Repair drywall with 1/21 gypsum board

-Replace window sill



-Replace vanity cabinet, mirror and light

-Replace lavatory faucet

-Reglaze bathtub

-Remove exhaust vent above shower

-Hang 1/4″ drywall on the ceiling. Finish and texture



-Replace window blind with 1″ cordless vinyl blinds

-Replace ceiling fan with light fixture

-Repair drywall 



-Scrape, sand, and paint fascia board around the entire perimeter of the house

-Sand and paint porch columns

-Replace approximately 12 sqft of aluminum siding on the back of house

-Power wash siding, porch, roof, and rear steps

-Paint storage building

-Replace the front porch light

-Replace approximately 8′ of fascia

-Replace approximately 12′ of wood siding

-Add approximately 17′ of door trim on the rear exterior door


The Sale

We listed this property with Nate Sanow on 11/4/2021, and received an all-cash about two weeks later. As it turned out, that deal fell through so we re-listed and received another FHA offer on 12/3/2021 for $114,900. 


How It Shook Out

Purchase Price: $60,000

Closing Cost: $2,104

Rehab: $26,933

Utilities: $822 (Gas, Electricity, Water/Sewer)

Interest: $3,483

Sale Price: $114,900

Closing Costs (sale): $12,884


Net Profit: $8,674


So, that’s the bottom line for our first flip, Dirty Diane! We learned a lot and stayed in the green while we did. Soon, we will share our biggest lessons learned but we want to hear from you- how do you think this one went? Drop us a note on Instagram @honorandequity!

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