Jenny's Journey: $40k First Flip Profit in Just 3.5 Months in Oregon

This interview is with our awesome FlipSisters Coaching Program Member Jenny in the Portland area who made $40,000 in just 3.5 months using creative financing.

She is a mother of young children and works remotely. 

The time and financial freedom that real estate investing can bring were the things that most inspired her to finally chase this dream she had of flipping a house.

In her first 12 months in our program, she completed 2 flips and bought a 3rd!

In this episode we cover:

• How she found her first flip
• How she financed it all using a combo of hard money and a HELOC
• The surprises that increased her repair budget by nearly 50% 
• How buffers and a conservative ARV saved the day
• How her real estate agent didn't understand the FHA Rule around flips - we have to be our own advocates!
• The neighbors' reactions to the home she created

…and so much more. 

GOODIES

1. THE book on women flipping houses is here! Click here to grab the digital download of my new book for just $4.99! Just as everything else we do is different, so is FLIPPED: Lessons and Stories of Women Flipping Houses and Facing Their Fears.  

2. Sick of sitting on the sideline watching other people do the thing you want to be doing? Are you FINALLY ready to do what it takes to flip your first house and want incredible step-by-step training and support to get you there faster? Click here to see if we may be a fit to work together.

3. Follow That Flip! Follow this 8-part video series as we flip a house!

4. Our goal is to inspire 1,000 new women each month and we've been achieving it with help from loyal listeners like you! If you are getting value out of this podcast will you kindly leave us a rating and review and help us spread our message?

5. Are you a real estate agent tired of chasing the same potential clients as everyone else? Sick of the roller coaster commission? Get the REI Agent Pro Certification! Click here for info and to join the waitlist.

The Flipsisters
Leaving people and places better than we find them.

Transcript

Speaker 1 0:01

You're listening to the Flip Houses Like a Girl podcast, where we educate, empower and celebrate everyday women who are facing their fears, juggling family and business, embracing their awesomeness and wholeheartedly chasing their dream of flipping houses. Each episode delivers honest to goodness tools, tips and strategies you can implement today to get closer to your first or next successful house flip. Here's your spiky-haired breakfast taco-loving host. House flipping coach Debbie DeViery.

Speaker 2 0:40

Hey, thanks for hanging out with us. Today I am introducing you to one of our flip sisters in the Portland area. Her name is Jenny and she completed her first flip and since recording this she's actually completed and sold her second flip. So she is going to walk us through all of the things how she found it, how she financed it, the issues that came up, the challenges, her lessons learned. You know all the good stuff we love. She made a $40,000 profit in three and a half months on her first flip and guess what? She's hooked. She found the perfect balance between her creative side and her business side and she says flipping houses really just integrates all of the things, and I have to agree. All right. So let's get into this interview with Jenny. Let's start with your name and where you are. A little bit about who you are, a little bit of your story, what you're up to in the world, if you do something other than this.

Speaker 3 1:49

My name is Jenny and I have a three and a six year old, so I spent a lot of time being a mom and then I've worked for the same company for like 20 years and the great thing about it is it's super flexible, and the not so great thing about it is it doesn't pay very much. So, yeah, I was just looking for something. I've done a few entrepreneurial things. That's the blessed thing about my day job is that I can do, you know, try new things. And I started out selling products on Amazon and I did really well doing that and I just I loved the freedom and I got a taste of that. And, you know, I got it to the point where it was pretty passive.

Speaker 3 2:32

And then I had two kids and I, you know, kind of dropped that. And then, you know, I kind of came upon on this. I had remodeled my house and I had always kind of thought about it. And then, of course, HGTV, like everyone says, and it just kind of was something that kept creeping up on me and it was like that little whisper that I kept hearing like, you know, why don't you try this? And it was just so big, you know, it was just so big that it took me a while. But you know, when you have two kids and you're paying for childcare, you got to do something different. So so the voice got louder and you know, just one thing kind of came together after another and the next thing, you know, my life is totally changed and that amazing.

Speaker 2 3:15

What kind of work do?

Speaker 3 3:16

you do. I worked for the Nielsen TV ratings and I just do sample selection for them and things are changing, so there's not a whole lot of stability with that as well. So and it was just always kind of a flexible situation where I could, you know, work 20 hours or 40 hours and do something else if I wanted to, and not if you know. It's just it always worked out that it would just kind of be when I needed it, and if I didn't, I could do something else. So and it, you know it kind of started me out because then I was able to buy a house and then I use that house for my key lock and you know, that's that's what helped me out a lot with this, this career.

Speaker 2 3:52

That's amazing, okay, so let's jump into it. Let's talk about your first flip. Okay, how? How did you find it?

Speaker 3 4:00

You know, I just I was looking everywhere but I ended up finding it on MLS, which for my first flip felt most comfortable just to have a state agent. I had found another one before that with the wholesaler and had it was a little tricky and didn't work out and so it ended up just. I started looking more on the MLS and I did find this and there wasn't pictures or there wasn't like so much competition and we put in a bed and it got got accepted. When did you close on the purchase? I would close on March 27th, okay.

Speaker 2 4:34

Yeah and then okay. So what was the purchase price?

Speaker 3 4:39

It was 335,000.

Speaker 2 4:43

And where are you again? You're in the Portland area, yeah, yeah.

Speaker 3 4:48

We were in a Portland, we were 10.

Speaker 2 4:50

Yeah, and then, okay, so how did you fund the purchase?

Speaker 3 4:59

I did use a hard money lender and then I was able to tap into my HELOC for the rest of it and yeah, I got pretty decent rates and I was super happy with the hard money lender. They were really easy to work with and I guess hard money lending kind of scared me at first, but these guys were professional, they were great, they were amazing. I really enjoyed working with them.

Speaker 2 5:26

So what did you initially think the rehab budget was going to be? This is always a fun question.

Speaker 3 5:37

Yeah, I mean I thought it was going to be around $40,000. It was a lot more than that, but I also overestimated all the purchase and holding and selling costs, so it balanced out a little bit and then I had a pretty big buffer, so it still worked out, but it was quite a bit more than I thought. Yeah.

Speaker 2 6:00

All about the buffer man, yeah, okay. So what did the rehab end up being?

Speaker 3 6:06

It was 63,000. So quite a bit higher.

Speaker 2 6:10

Were there some big surprises that caused that, or what happened there?

Speaker 3 6:15

I think there was a couple of things where I just really underestimated some things that I thought were going to be minor.

Speaker 3 6:22

This wasn't an unusual house, it wasn't something I could look up on Thumbtack, which is one of my favorite places to help themselves, but this tenant had sharpied all over the windows and the windowsills and just a lot of interesting things that didn't have experience with that and didn't find people that had experience with that.

Speaker 3 6:46

And I heard like, oh, you just send different cleaners and whatever that people were sure it was going to come off and it didn't. So it was like this little thing turned into a really big deal and certainly didn't include it in the rehab the way I should have. But we got it and didn't break the bank, but it was little things. It was definitely a lot of little things that really really cut it up. And yes, the repair of the repairs was like a genuine line item for me at this point, because the guy would come in and he'd demo the door and that was his job, but then the drywall got messed up and it was all of these repairs that caused more repairs and I didn't rebudget for like the repair that would be needed.

Speaker 2 7:39

I totally get that. I just went to a project and they took off like one of these 1970s mirrors. That's just the mirror against the drywall right. They pried it off but damaged all the sheetrock around it and I'm like, guys, this doesn't have to happen. These have screws that you just take the screws out and the glass comes off.

Speaker 3 8:05

But yeah, I get it, I know, I totally get it. Oh gosh, even like the crawlspace guy, you know, he went up and when he put the hatch thing back in it like cracked and it was because it was old, you know and it was just like oh God.

Speaker 2 8:21

So were there any big surprises that you came across, any big issues?

Speaker 3 8:28

Yeah, and this is one of the things I learned is that you know I was trying to be competitive and you know, I know this was like a major no, but I did an inspection until after, afterwards. So you know I it was a newer house, so I felt like I could do that just because I knew the systems were okay in the roof and the siding. I knew enough to know that and so you know, but there was like there was like a rat infestation in the crawlspace and you know, and it's just the mindset was constantly a thing, because when he did that inspection and I had already bought the house, you know he went, he opened that hatch and he just went, whoa.

Speaker 3 9:09

You know he just started making all these like horrible noises oh gosh, oh God, you know, but like in my heart of hearts, I knew it was a good house and you know. And then you know, I was surprised that some of the bids, like the first guy, came out for this crawlspace and it was $7,000. And I was like that's crazy, dude do it right.

Speaker 3 9:34

Dude put insulation and rodent removal and vapor barrier, yeah yeah. So that was certainly one of my lessons is just ride the wave, is you know? Just ride the wave because the next guy was like $2,500. And you know he was amazing. So it's so important.

Speaker 2 9:57

It's so important to get multiple bids, even if you like, even if you like that guy that came out Yep, yeah, two, two mini splits. I just got bid bids for installing too many splits and the first guy came in at $10,000. And I was like, well, that's ridiculous. The last mini split I put in was pre-COVID and so I thought I don't think so. Maybe they went up like maybe all of this is that much more, and then the next guy came in at like 4800. And then the third guy came in at 5k and I was like, okay, so the first night is way wrong. Yeah, but, yeah it. But I liked the guy and I almost was just like, yeah, sure, come on, make good choices and get multiple bids, yeah.

Speaker 3 10:40

Yeah, it was. It would have been easy to just do that just because there's so many bids on this house. But you know that's what I'm saying. Yeah, the items. I really did always get a three to even five bids. Yeah.

Speaker 2 10:51

Okay, so rehab 63. How long before you put it back on the market? So you said March. You bought it in March, right yeah?

Speaker 3 11:01

end of March, march 27th, and then I think we had it listed right around May, I want to say May 18th. It was like six to seven weeks.

Speaker 2 11:09

All right, so any other big things that came up, big surprises.

Speaker 3 11:15

I don't think so. Yeah, yeah.

Speaker 2 11:18

So then you list it.

Speaker 3 11:20

How did that feel? Was that scary? It was scary, you know. I remember the guy like he was my buddy by the end. You know, we were just like the last couple of days kept doing things and you know, at one point I was just like, oh my God, it's like that cooking show, where they're, they have, like you know, 60 minutes to make the meal and then they just have to be done. And I was like I was like I had to tell them that I think I've been like, I think we're done because it's it's live. Actually, right now we're done, we have to stop. I realized there could just you could just go on and on and on, but that lasts the details at the end.

Speaker 3 11:55

Yeah, yeah, I did those completely for sure. Yeah, so it felt amazing. I mean it really. That first week, you know, when I had all the drywallers coming in and I was like it was a messed up house. It was somebody who had mental health issues and he had punched and kicked and torn out 75% of the drywall. And you know, people walked into that house and they, they, they all, like it was just, it was I would. I would say like wait for it, three, two, one. And then they would say, whoa, wow, you know, it was just. It just smacked you up inside the head to walk into this house and see the level of destruction that had happened. You know, when we listed it, you know I just started people would walk into that house and they would say, wow, you know totally different way, and it was just the most amazing feeling to have that juxtapose. You know that beginning and end of that process to come together like that was just amazing.

Speaker 2 12:53

That was a huge transformation then.

Speaker 3 12:57

Yeah, it was Absolutely. This house was broken.

Speaker 2 13:02

What was the exterior like? Like were the neighbor like? Was it this sore thumb stuck out, or was it really just inside?

Speaker 3 13:09

It was. I mean, the neighbors would say you know, that was like they always wanted somebody to come fix that house up.

Speaker 1 13:14

It wasn't terrible.

Speaker 3 13:15

I mean I didn't think it was terrible, but you know there was junk and it was there but it wasn't like. You know it wasn't anything compared to the inside. But you know they it was very sweet because they all would come over and say just thank you so much. Thank you so much because they had been dealing with this neighbor who was mentally unwell and you know police were out there all the time and you know they couldn't have their kids playing outside. So you know it was a big deal to have. You know. You know, have a new neighbor who you know they could feel safe around, come in and you know I really appreciated just how much they appreciated it. I felt good that it was so helpful. You know, especially when they were out there with their kids and not wanting their kids to play outside, I was like oh, that's horrible.

Speaker 2 14:01

Yeah, so okay, what were you initially thinking your sales price would be? What were, what was the ARV initially?

Speaker 3 14:12

I think I went, I was trying to go low just to be conservative, and I said, like you know, 469 is kind of what I was like wanting to have work, got it, got it and then hoping it would go up a little bit. Sure.

Speaker 2 14:25

What did you list it at?

Speaker 3 14:28

We listed it at 489.

Speaker 2 14:30

Okay, so you put it on the market. And then what happened?

Speaker 3 14:34

It didn't go as fast as I thought. You probably remember that, yeah, I mean it was obviously spoiled. It was like a week and I was like, hey, what's going on?

Speaker 2 14:44

I'm the same way. That's why I don't list my own properties anymore. I fired myself because I am my own worst client.

Speaker 3 14:51

I imagine how hard that would be. Yeah.

Speaker 2 14:53

But it's scary.

Speaker 3 14:54

Yeah, it is In that area. Things were pending within two or three days. Even though it took a week, it was a very long week.

Speaker 2 15:04

Yeah.

Speaker 3 15:04

Was it only a week? Yeah, I think the offer came in a week after, like seven or eight or nine days. Then we had to go back and forth because it came in 15 under and I was ready to go there. I was trying to buy time for a better bit, honestly, because I wanted to go through it. I used my whole time up to accept or not accept. We went back and forth like probably three or four times.

Speaker 2 15:33

What did you land on?

Speaker 3 15:34

finally, we landed on Dot Buyer 49. I think we landed on like 483.

Speaker 2 15:40

That's so funny that it was only a week, because I remember you posting. Yeah, I thought maybe it was closer to a month. That's funny. Oh my gosh, we are definitely twins in that area.

Speaker 1 15:53

Yeah.

Speaker 2 15:53

For sure. Yeah, it was a long week. Oh gosh, did they end up closing on it?

Speaker 3 16:02

No, they did the exact same. They terminated on the inspection because, basically, the roof wasn't brand new and the siding wasn't brand new. That was what they said. Everything, like the systems, were not brand new. They were cash buyers, so I think they thought they had a little more like leeway or something, but everything was in great working order. There was nothing, no issues, anything. So I wasn't yeah, it's all cash.

Speaker 2 16:28

In the end, it's all cash. There's no difference to you, right, I can wait an extra two weeks. Yeah, exactly, exactly, ok, so that one didn't pan out. And then how long after it came back on, because that's always such a bummer, it's like oh, I don't want to put it back on the market.

Speaker 3 16:47

People are going to think something's wrong with it, totally, totally, and I thankfully did not have to put it back on because in the midst of the haggling we did get another offer which my real estate agent missed. But, yeah, but we did wind up having them as backups so we at least didn't have to go back on and they were about our own ways.

Speaker 2 17:10

What did you end up selling at? I guess I should add.

Speaker 3 17:13

We ended up selling full price, but we gave like a 5K closing cost. Ok, so 484.

Speaker 2 17:20

Basically, yeah, Was there anything that came up with them with their inspection or anything came up during the escrow of that? Yeah, oh yes.

Speaker 3 17:32

I had heard you say something about the FHA loan and this is where I would say really, really vet your real estate agent, because they matter, it matters.

First Flip Experience and Future Plans

Speaker 3 17:41

And I was just so busy with the house that and this guy just kind of like kept being persistent and I was like, well, if he's as persistent with me, I kind of let up a little bit and I got the wrong real estate agent. But I had asked her about because I didn't even meet her. He like handed me to somebody else and when I asked about that FHA clause she was like, oh, no big deal, Because they were originally conventional and then they wanted to switch to FHA. And then I asked her I know that there's like a 90 day window thing and I asked her and I didn't double check and she said, oh no, there's no issue with that at all. She was saying that it was 90 days from when I closed to when they put the offer in. So it was more of a ride than needed to be, but it works out. And we did have to completely resign all the sales agreements and do all that stuff and it was OK, but it was stressful.

Speaker 2 18:39

Yeah, it's real. Did you have to turn over your receipts or anything, because I've had to do that with FHA? I did not, I was expecting that they didn't.

Speaker 3 18:48

The appraisal just was like literally hardly heard anything about that. There was no issue at all.

Speaker 2 18:54

And you didn't get a second appraisal.

Speaker 3 18:59

I think there was maybe a second appraisal yeah.

Speaker 2 19:02

What else Did anything else come up?

Speaker 3 19:06

Not really, Other than having to redo the entire sales agreement. It was a super smooth. Their inspection requests were so minimal I couldn't even believe it. And it was easy and it was pretty smooth sailing, with the one exception.

Speaker 2 19:23

Yeah, Okay. From purchase date to closing date. How long was that?

Speaker 3 19:30

March 27th through July 14th, so like three and a half months, is that April?

Speaker 2 19:36

That's amazing. What was your profit? It was just over 40,000. That's pretty great. Yeah, I want to win. That's pretty great.

Speaker 3 19:46

Wow, more than the money. It was just like what I learned and I met so many amazing team members and, of course, now I'm hooked and I already have my second house going and I'm under contract for my third house. I did win a little further away, but not local. Then the third one is local, but it's awesome because I got the inspection first. I have all the at least 75% of the people I really liked and will use again and have great relationship with and know what to expect. It's amazing to have that first one under the belt and then just I mean, I'm sure there'll be harder times, but I feel like if I can do that, I could do anything, as that's how it feels.

Speaker 2 20:42

Seriously, that's huge. Yeah, congratulations, thank you. Did you do anything to celebrate? Did you buy another house? Was that your celebration?

Speaker 3 20:55

Kind of yeah, I'm sure I did, but I truly. It was just kind of like onto the next one, that long closing period, because the closing period was as long as the actual rehab period. Oh, got it. Oh antsy, and I should have looked into a private money lender, because all my money was tied up in that house and all I wanted to do was go get another one. Can't do anything, yeah, so yeah.

Speaker 2 21:25

What did you learn about yourself and your first flip?

Speaker 3 21:29

Just that I could do. It is really the biggest thing. And I do know I'm learning how to give myself more credit for the skills that I have and the knowledge that I picked up and also allow myself to not need to know everything or I don't have to know everything I can rely on, especially people I've built relationships with. At this point and I mean that was the biggest thing and I just I also realized this is just my gig. It brings together skill sets that I've had that I could use one here or one there, but this brings together everything and it's right brain, it's left brain, it's social, it's not. It's just amazing balance and has the variety. That gives me passion.

Speaker 3 22:19

And then to see kind of how it affects the, and the same thing with the poor-dortured one, that it was a drug house, honestly, and it had a squatter, and so the neighbors are doing the same thing. They're just so grateful and that means a lot to be able to make it safe for kids to play in their yards again. Or in the same situation, because that poor-dortured one still had the squatter and we were there and there was people passed out on the lawn. I mean it was crazy. The first couple of days were crazy. To be able to kind of bring that level of peace back to a neighborhood is you can't beat that. Really it's amazing.

Speaker 2 22:58

We aren't always the bad guys that people Scoob flippers.

Speaker 3 23:03

No, yeah, and I thought that was a lie because I did. I was like, oh, I invest in real estate and people have their notions about it and a little bit of me bought into it, like OK, but the reality of it is I rehab that house Like I'm going to live in it and it's really helpful to neighborhoods. For sure, that's real, that's awesome. Totally.

Speaker 2 23:32

Well, congratulations on your first slip and on your next two. I'm excited to see if you feel up for it. Share in the group your other two that you're working on. That'd be fun to see. Was there anything that we didn't touch on that you wanted?

Speaker 3 23:49

to. Yeah, I, just this group of women, I just can't like say enough about just how important that has been to that community, to you know, those days when your mindset isn't quite the right way and you know, to just surround yourself with people who will love and support you and and see you, know your goals and help you and and give you wisdom and education, that will just create a whole new life for you. Or, like the, the, the importance of that was just, you know, just off the charts and it's just super good yeah.

Speaker 2 24:25

Well, thank you for being part of it. Thanks for contributing, yeah, and thanks for being here, yeah.

Speaker 3 24:30

Yeah, well, thanks for having me and thanks for creating an amazing group of women who can support each other and do cool stuff.

Speaker 2 24:37

It's awesome, we attract really cool women.

Speaker 3 24:40

Very special.

Speaker 2 24:41

Thanks, jenny. Thanks for hanging out. It was nice connecting with you, you as well. Thank you so much Awesome.

Speaker 2 24:47

All right, I'll see in the group. Okay, all right, thank you. Wonderful, inspiring story, jenny. Thank you again for sharing it with us. All right, if you've been sitting on the sideline and you're tired of sitting on the sideline, you're tired of watching other people go chase this dream of theirs? This is exactly what we help women do. If you want to buy, renovate and sell or rent houses, that's what we teach. So go to herfirstflipcom and book a call with us and let's see how we can work together. All right, until next time, go out there, flip houses like a girl, leave people in places better than you find them, and make it a great day. Bye, y'all.