Welcome to the channel, everybody, I want to talk to you about a deal that recently just closed and I’ll be honest with you, this deal could have crushed me. And because I was able to navigate the deal the right way that I’m going to show you right now, I was actually able to get out of the deal and make money. And I’m going to show you how this deal went sideways in a video of me actually talking to you about flipping the deal like a year ago, okay, because I think it’s kind of cool to see the before and after. But let me tell you what happened with this deal. But before I do, let me tell you a little bit more about what you can expect to get in this video additional to what I just said.
By the end of this video, you’re going to find out exactly what properties you should be flipping but what you should do, just like I did, that will get you out of a bad situation. If you’re able to manage it. Let’s dive right into it. So this property I was we bought this property about a year ago and we flipped it now we bought this property right before interest rates pretty much hiked up and we bought it at a price probably at the top of the market. So once we flipped it, we actually bought a pretty good discount.
But once we flipped it, the market was just pretty cold here in Utah, a lot of people weren’t making moves, and people were just kind of waiting to see what happened to interest rates. So instead of taking a giant loss at that time and selling it just to get rid of it, what we did is I don’t know if you guys know about this, but you can. It’s like a burr method, but you can instead of just selling the property listing it selling immediately you can take it down and burn it, which means you refinance out of it.
And you can do a rate and term you do a cash out refinance. But what we did is we just refinanced it, and we waited until we could sell it, okay. And the reason why we did that is because if we would have sold it at that time, about a year ago, we would have been lost a lot more money. But thankfully, because we were able to refinance out of it, and then rent it out, we were able to sell it now, well, actually a couple months ago for way more, but I think about $50,000 More than we would have used last year, and we were able to, you know, cover the mortgage, and the interest rates were pretty high.
So it’s kind of hard to cashflow. But thankfully, because we understood that that model or the ability to burn, refinance and get out of a property that way, if you are underneath underwater, like that’s what happened to a lot of people with, you know, the interest rates going up, we’re able to make out okay, but the reason why I want to tell you guys this is because if you buy a property that is discounted, but the interest rates shoot up again, even worse than it’s the value is going to go down because people can afford less of a house. S
So just make sure when you’re buying a house that you buy at the right price, and again, I bought the right price, but no one could have foreseen what was going to happen. Maybe some people would really foresee it, but make sure that you can refinance out of it, that you’re in a position where you can do a burr or rate and term refinance. And yeah, and then you can sell in the future. If you can keep it as a rental, that’ll be the way to stop the bleeding. But some people obviously they can’t they can’t afford to take down to 10 or 15 flips they’re doing at once. Luckily, we weren’t doing that many flips at that time. So anyway, that’s what you do.
And what I want to do is I want to show you this video of me flipping this house at the very beginning and walking people through how to flip a house and just show you full circle how this went down. Because we ended up did we did end up making about 41k on it after everything was said and done. You’re getting 41k at close but this is what it took to get it to that point so everybody check this video out and if you like this content, please like it and subscribe, check this video
So what’s up everybody inside this house that we’re flipping I’m about to give you the scoop. So we got this deal from a flipper that was kind of tired of flipping. I think he might have ran out of money who knows what happened but he was flipping it already as you can see from the floors, they look pretty nice. They painted the fireplace the brick but basically we’re coming in here as we’re finishing the flip out so I’m going to show you what we’re going to do and what we’re not going to do and we’ll see how it goes I’m not who knows if it’ll work I mean I think it worked out we did our numbers and we know we there’s enough spread but I’m not a fortune teller. We’ll see what happens in the market but we got to keep going keep going strong everybody so first, check out the walls right here we got to paint them nothing too crazy not these walls the windows are old they’re double paned.
But can do a really good job of cleaning them up alright, nothing crazy with the Windows put some molding on the bottom that needs to be done. Fireplace is fine it’s been painted as you can see the screen door and then older but like we’re just going to clean it we’re not going to put a brand new door in there so paint paint side network you guys can see we’re probably going to do fix this you know put a more modern light fixture on here. Kitchen and you get to the kitchen guys the they’re already granite countertops in this house that was getting flipped and the cap the cabinets look decent. I’m not the biggest fan of these handles, but maybe we’ll change the handles but other than that it’s a small kitchen but it will do it will do just fine door put a new door on this thing and if you Hector you want to follow me outside the house had a lot the grass was about this high. So we got a bid for like $800 to cut the grass from some jabroni and we said we’re not paying $800 To cut grass.
So what we did guys is one of our our guests a project manager said I’ll freakin knock it out and he knocked down a couple hours got a mower and mowed this whole thing down now looks decent. It’s not perfect but it’s better than it was but yeah guys I’m in right now with the way things are who are going to try and rock you they’re gonna put you over to try to put you over the coals and rock you and charge you more than you really should to do stuff but you just got to say no and just do it yourself. Sometimes I know that’s not always the coolest thing or what you want to hear but sometimes people charge too much. So coming down here guys, we have a bathroom that needs to be finished.
But it’s the drywall is already done in there and the tub is new originally put a vanity in a toilet and finish the floors. Nothing too crazy. With that coming in here you’ll see that the flooring needs to be done obviously we need to paint these are older doors that aren’t going to fit we’re gonna have to put in new doors or paint them most likely put new doors back in the in these two bedrooms and then nothing crazy you just need to clean it put carpet paint okay Same with this one carpet paint clean the windows so as you can see so far you know it’s not going to be some astronomical on the flip it’s just you know finish finish the bathroom carpet paint clean this up really nice.
One thing that is going to cost us a lot is the master but hey guys one thing I’ll tell you right now one thing that I do enjoy is when people leave stuff behind they left some DVDs I might I might take one and watch one a night with my wife who knows but the sellers they always leave stuff so so this is the master obviously we’re gonna paint carpet prior change the doors in here the master bathroom needs quite an overhaul you’re gonna have to change the floor Be careful there you don’t want to fall through the floor the floor is a little soft and it’s got some weak some I’m telling you some crazy tile. Yeah so this this used to be the style back in the day but they got some blue nasty tile. We’re probably going to open that shower up real nice. But yeah, Master needs to be worked on.
