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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.
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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.
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Here's your spiky-haired breakfast taco-loving host house flipping coach Debbie DeViery.
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Hey there, thanks for hanging out with us today.
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In this episode I'm introducing you to Tammy and Lindsay, who are a couple of our flip sisters in our coaching program in Pennsylvania.
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They completed their first flip and actually, since recording this episode, they've completed and sold their second flip as well.
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So big congrats to them on that.
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In this episode, we're going to be covering their first flip, how they found it, how they financed it, how they handled the challenges that came up, and we'll also talk about how, shortly after joining our program, tammy actually lost her job and that became a pretty strong catalyst for getting their first flip under contract.
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I think it was within maybe a week that they went under contract on their first flip.
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After that happened, and how, in the moment, something stressful happening like losing a job, losing that steady income, actually becomes a blessing and allows us to move forward toward something we really really want, which in her case, it was having this business flipping houses, which led to a $23,000 profit in three and a half months on their first flip, and on their second flip they actually made $22,000 in two weeks Amazing.
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We're going to get into all of that in so much more.
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You're going to love them.
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Let's meet Tammy and Lindsay.
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So do you want to start out by introducing yourselves we get an awesome two for one today and just letting us know who you are and where you are and what you're up to in the world aside from flipping houses.
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Yeah, sure, so I'll go first.
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My name is Tammy.
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I live in Harrisburg, pennsylvania, with my wife, lindsay, who's joined me here today, and with our three young boys, 10 years old and seven year old twins actually almost eight, but seven year old twins.
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So I actually used to be a P and health teacher for about seven years prior to my twins being born and then, when they were born, I decided we kind of had a conversation about it and decided to take a step away from teaching and take on probably one of the most rewarding but difficult jobs in the world and that's being a stay at home mom.
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So we start.
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I started that not long after the twins were born and then we moved from Florida to Pennsylvania in 2017.
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And it was around that time that I guess the dreamer in me kind of started to develop a little bit, because my mind was thinking like, well, I'm gonna stay at home mom, but what can I do to kind of help support my family?
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So at that time it was we owned a camper and I decided I was going to start renting it.
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So a little side hustle job that turned into actually over the next few years are very good successful business.
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I mean it was.
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I ended up managing other people's RVs and I had about an inventory of about 20 units nice, which was great but I realized it was just unsustainable for me to be a stay at home mom and to run this type of business.
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So it was 2020 that I ended up selling off that business, and then this past summer was when well, no, so then I still bought that business and then I stepped into a corporate position as a franchise support manager in the RV rental business and did that for about two years before I unexpectedly, this past summer, was let go of my job.
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Well, did not see that coming at all, but I think the worst part of it, the hardest part of it, was I couldn't even collect unemployment, so so we were a little little shook up, but but anyway, since then, real estate investing has become my main focus, my job basically.
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But during our first flip, there was something that sparked a little inspiration in me that I realized that, doing the hands on stuff that I love doing, I could actually use that skill and serve others.
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And so I started a little small business where you know I'm offering like house cleaning and painting and like little little honeydew list stuff.
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So I kind of I'm on the ground floor of that, but so we'll see where that takes me.
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So that's kind of what I've been doing, and I'll let Lindsay introduce herself about what she does.
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Well, I do not have quite a story.
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Oh, the boring one.
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Okay, here we go.
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The boring one, yeah.
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I have been, she's not.
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Yeah, I have been a nurse for almost the last 20 years and I absolutely love it.
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It's wonderful, it's my passion and I'm a nurse supervisor now.
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So a lot of the skills that I've learned as supervising people, I'm being a team manager, I'm really, you know, helping Tammy out when she's going through contract or conversations and managing the people in those ways, and I'm like you know.
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This reminds me of one of my employees and this is what I would do and just I'm being like her sounding board when it comes to that kind of thing.
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But I didn't have a big career changes that she had.
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Think of her.
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I do all her entrepreneurial things and I'm just here supporting.
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That's awesome.
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So you recently closed on your first slip, which was literally so freaking cute.
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That house is so cute, it's so cute I want to squish it.
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It's just it's really cute and you did an awesome job.
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So I want to hear all about it.
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I want to hear how long.
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Okay, so this is interesting, right?
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Isn't it interesting in hindsight?
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Like, yeah, it sucked that you lost your job.
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That felt pretty bad, Like 10.
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Mm-hmm, super punch for real, yeah.
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And didn't it kind of need to happen?
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Yeah, 100% yeah 100% you could have said it better because I was in a position with my job where so many changes had taken place over the course of I don't know a few months, maybe six months, that it had become unenjoyable.
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It was stressful.
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It never turned off, but for me it was a job and I was committed to working my job because I was supporting my family.
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In hindsight, here I was, you know, getting into real estate, investing because it started as like a side hustle.
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You know we were going to be doing this on the side of both of our full-time jobs.
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Like most people, do you know it's not something you typically start when you don't have a job Right, you just don't do that.
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So you know, getting into this, yeah, it was 100% God's way of totally, just, you know, pushing me into the next chapter of my life, whatever that was.
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I still don't, you know, I'm still kind of figuring that out, but I'm trusting the process and I'm very open-minded to knowing that there's a plan for me and that everything's going to be okay and I'm just going to apply when I'm learning the people that I'm meeting and all of it, and just kind of seeing what happens.
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You know, I'm not living in fear.
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I just want to walk in faith and just trust the process.
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Yeah that's awesome.
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That's what we're doing, yeah, yeah.
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It's those things.
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They're usually the thing that was most necessary to get us where we're supposed to be next, because we weren't doing it on our own, and so it's like universal or God, whatever anybody calls it.
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Right, okay, so you didn't.
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So here you go, I'm just going to flick you off the edge and you're going to be okay, but you're going to kind of feel a little bit out of sorts for a while.
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Yeah, yeah, it was the day that I lost my job.
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I picked up the phone and I called my wholesaler that I had been working with and I said, I said listen, I said I just lost my job.
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Today I'm super motivated.
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I got to find a house, you know.
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So I was like, just keep me on my on your radar, just think of me when you're out there.
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And he's like, okay, I got you.
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You know, it was like, you know, he was kind of looking out for me and I felt that we had developed a good relationship and so, you know, I just wanted him to know the position that I was in.
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And so from there, we, you know, we walked a couple more properties and put in some offers, but nothing yet.
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And I think it was like three weeks to the day that we losing my job that he called me up and he was like hey, you know, that house that you looked at I think it was about a month and a half ago it was priced at 135, 135,000.
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I think our offer that we had put it on it was around 95,000.
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Of course it was too high.
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It was not something they were willing to go with.
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He, and actually it was a couple of weeks later, they had come down to 115.
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Obviously was still too high, right, but anyway, he was calling me to let me know that the it was an estate sale or whatever and it was the attorney that was trying to get rid of the property.
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I guess the family was having a lot of issues and he and she was like hey, listen, I need to get this household, so we're going to drop it down to a hundred thousand.
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And so he called me and he's like Listen, I want to give you the first opportunity to purchase this property.
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You know.
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He's like I know you're in a position, you are.
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And I said Okay, I said I tell what Lindsay know.
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And I said let's go walk the property again, let me get my eyes on it again.
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And during walking that property I'm thinking in the back of my head Okay, now that I have extra time and I love having my hands on projects that factored into knowing that I could put a little bit of sweat equity into this and I could make these numbers numbers work.
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So we said, okay, let's put in an offer of a hundred thousand, and we did and the number was accepted.
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So we were super excited and I think we closed.
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We would have closed in a couple of weeks, but we we had a big like week long vacation coming up that it would have put it right in that time and we were like you know, can we close in three weeks?
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And they said, yeah, that's no problem.
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So we ended up closing in the end of August, august 21st, august 21st, yeah.
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So Okay so a hundred.
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K.
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And what were you thinking?
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the repairs would be so at the time because my my contractor had walked the property with me to give me a rehab estimate.
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I think we were sitting thinking around 58,000, maybe maybe 58 to 60,000.
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And then it was more of.
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I was telling my contractor, hey, these are my numbers, and like we have to make this work in this amount of you know this estimate, he's like, okay, okay, yes, that's, we'll make those numbers work.
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We got this so.
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So when we got under contract, we got an inspector in there right away to have an inspection done on the property and when he completed the inspection he called me up afterwards and he said so he was kind of going through the list of things and he said, so you're planning on replacing the roof on this house, right?
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And I was like, um, no, that was actually one of the out of everything we were doing to this house like completely doing everything, the one thing we kind of were passing on because we thought it, I mean in my contractor said, no, it looks okay, you know, it just needs to be cleaned up so, and he said no, that that roof needs to be replaced.
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So I said, okay, let me go my contractor.
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So I called my contractor and I said you know we got to replace the roof and how much is that going to cost us?
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And he said, oh, you're, you're looking at about $8,000.
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And I said, hmm, that's not going to work.
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I said we got to figure something else out.
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So I we live in a community with a lot of Amish that do phenomenal work and for good prices to do, and I said you know, I'm going to replace the roof.
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I called a community with a lot of Amish that do phenomenal work and for good prices too.
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So I said let me call around.
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I called a couple people that I'd found in a Facebook group and then her father is works for a building yeah, custom home builder.
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So he was like you know what, lindsay?
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there was a guy who called me today and he said are you looking for?
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We have these services, we do roofs, could you use us?
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And he's like no, we have a guy we use all the time.
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He passed along his number.
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I said, tammy, this guy sounds great and I'm not because it you know, what I was finding with the other roofers that we were getting in contact with is, even if they could, there was something that couldn't even come out and put an estimate on the house for like a month.
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Yeah, just an estimate.
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And I'm like, oh, my gosh, I was like this is not going to work.
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So he was like, oh, I can be out tomorrow to give you an estimate.
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So he did and it was what?
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Like $5,400.
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I'm like, okay, that's better, this is something we can work.
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Yeah, that was much better.
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So yeah.
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And then he's like, oh, and I can, I can start in a couple of days.
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And I was like, so he ended up being a wonderful.
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Some of the contractors that I had had at the house while they were putting on the roof they're like, yeah, he's, he's doing it right.
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So, cause hell, we were kind of worried, just kind of going with the lowest price and whatnot.
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So but yeah, so he ended up working out well.
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So that obviously pushed our rehab up a little bit higher than than we were anticipating, and I would say so with the roof we ended up only going over maybe a couple of thousand more of that initial, because we were right around like 67,000 total with the roof and and everything.
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So there any any other surprise repairs that came up?
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I'm surprised repairs, I don't think so no it wasn't.
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No, we I mean, we kind of knew what we were getting into with the HVAC, but because we put it in a whole new system Originally, we thought, cause it had a mini split system and again, the things you learn as you go through this we thought that was going to be suffice.
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And my electrician, or the plumbing electrician guy, was like you know?
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No, this is.
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You know, we got to put in a whole new system.
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So that was initially what we talked about in the beginning, but it wasn't any surprises.
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Everything seemed to go pretty good as far as everything else we the roof was the main thing we just weren't anticipating yeah.
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And then Okay, so three weeks to close, all right.
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Oh, how did you finance it?
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So Tammy is like a great relationship builder and did all this due diligence and finding HMLs and had it all lined up.
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And then we said, you know what?
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We have a family member who their situation isn't just sold a business, they're looking to invest.
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Let's see if they're available to be a PML.
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So we put together a nice little PowerPoint and said guys want to fund the purchase price.
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And then we went a little bit further and said the second option is would you like to fund the purchase price plus half of the rehab, and then we'll fund the other hand.
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And they said okay, and we went with them.
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Yeah.
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It worked out for everyone, yeah.
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Yeah, it was just a matter of you know, just asking you know, because you just never know, you don't and what I'm finding out is a lot of people don't know that they can invest like this.
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You know, and now that you know, I'm learning more about it there's a lot of people, a lot of people, that do this type of investing and private money lending yeah.
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Yeah.
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Absolutely, obviously, we didn't know anything about either.
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So they're out there and they're willing to loan money, which obviously they're getting a great return, absolutely 100%.
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So my first that was one of my first lessons was don't judge somebody like like the amount of money they might have.
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My first private money lender was a preschool teacher.
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Had been a preschool teacher for 25 years.
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Never in a million years did I ever think that she had this statue.
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No, she did.
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She had a statue and she's like oh, yeah.
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And I was just like what are you even talking about, man?
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Who are you?
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Yeah, but yeah, you never know.
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And of course, when I was brand new I didn't know either.
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I wasn't thinking about it as an investor, but it's my favorite vehicle.
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Being a private money lender to somebody is awesome.
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I love that.
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And on the flip side, like asking, like don't be scared to ask because a lot of people just don't even know, they don't know how they can be protected.
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You know so, people just don't know.
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So, yeah, yeah.
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So you got all your funding well, some of your funding, the purchase price and then half of the repairs from private money lender a family member and then you funded the rest.
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Okay, from purchase to sale.
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What was the timeline?
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From purchase, basically clothes to close.
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Yeah, was three and a half months.
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Yeah, Very nice, three and a half months from clothes to close.
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So, yeah, I think it could have, looking back and the little bumps that we went along the way, it could have been a little bit quicker.
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I mean, we had initially planned on having it done about two weeks.
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Sooner or later it ended up and it really could have been.
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It.
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Just, you know the things that come along and the contractor's not showing up and you know those kind of things that you have to investigate and fix.
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But now I think I've learned, moving forward, because I've talked to so many people doing the same thing, just locally, and it's a common thing and we're not alone with having that experience.
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So, because I honestly thought it was like the cloud was over us, you know, and happening to us, but yeah, it really it couldn't happen.
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And so it's just what I learned from it is, you know, being stern and being organized and having that conversation to find out what's going on, so that you're talking through it.
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You know, communication basically is the key and with my head contractor we have developed a good relationship to where, even if we do come across some hurdles and some bumps.
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I can talk to them.
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We can talk through things and communicate and work things through.
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So that's been really helpful for me.
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Yeah, it doesn't have to be a confrontation, it can just be a conversation, right, right?
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It can just be a conversation, yeah.
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Right, the tone is everything, yeah.
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I don't like confrontation.
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You know, I don't like to have to get mad at someone or to kind of point out the flaws or something like that.
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But I'm willing to be like hey, you know, you don't have to handle it that way, Come to me next time.
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Or you know, like, rather than trying to sneak around or do it your way or whatever, let's just talk about it.
00:19:47.573 --> 00:19:49.045
We'll figure it out together.
00:19:49.045 --> 00:19:53.883
You know, because the way I was looking at it I was like you're playing with my emotions right now.
00:19:53.883 --> 00:19:56.852
You know I'm needing to take this seriously.
00:19:56.852 --> 00:20:00.259
So you know you're not the only one involved, you know.
00:20:00.259 --> 00:20:00.660
So.
00:20:01.121 --> 00:20:17.179
But I think the thing is to consider is that most contractors, if something happens, the person that hired them, the person they're working for, it's not a conversation.
00:20:17.179 --> 00:20:23.507
It becomes a big thing that prevents them from wanting to just have a conversation about it.
00:20:23.507 --> 00:20:30.758
They don't want to talk about it, so they're going to hide it, or they're going to not show up for a little bit and kind of hope it goes away, or they're going to.
00:20:30.758 --> 00:20:34.719
Maybe something comes up and they really need to go finish this one other thing over here.
00:20:34.719 --> 00:20:36.587
Like they just need to go finish this one thing.
00:20:36.587 --> 00:20:47.727
They'll be back and instead of just communicating that, because the person you know, they assume the person's going to get super mad, yeah, they do it, and so you're left in the.
00:20:47.727 --> 00:20:49.853
Where are they and are they ever going to come back?
00:20:49.853 --> 00:20:52.480
All because everyone's scared of communicating.
00:20:52.480 --> 00:20:52.619
Right.
00:20:53.730 --> 00:20:55.955
Over promising, under delivering.
00:20:55.955 --> 00:20:56.817
You know the kind of thing.
00:20:56.817 --> 00:20:58.342
You just talk to me.
00:20:58.342 --> 00:21:00.815
Let's like just be real with me.
00:21:00.815 --> 00:21:08.648
You know, and that's which you know, I still have a great relationship with all the contractors I work with and you know I think that we all learned from it.
00:21:08.648 --> 00:21:10.192
We all did.
00:21:10.512 --> 00:21:10.814
For sure.
00:21:10.814 --> 00:21:12.276
So it was a great experience.
00:21:12.276 --> 00:21:30.478
Yeah, it's, I think, one of the things that anytime I work with a new contractor or vendor or something, one of the things that they'll say to me is I've never been able to make a mistake.
00:21:30.478 --> 00:21:36.374
If I make a mistake, you know it's like a shaming experience versus I screwed up, I'm going to fix it.
00:21:36.374 --> 00:21:43.481
You know, this is how I'm going to fix it, but I'm just owning up to I screwed up because it's like nope, everybody has to be perfect.
00:21:43.481 --> 00:21:57.819
We can't make mistakes when in reality, we're making mistakes all the freaking time, like we're just like recovering from the stakes all the time, which is the that's the point but we're also so scared to screw up Like it's like this weird world we live in.
00:21:57.901 --> 00:21:58.060
Yeah.
00:22:00.487 --> 00:22:03.576
So what kind of things did you do?
00:22:03.576 --> 00:22:06.374
You said you did some of the work that you like to be hands on.
00:22:06.374 --> 00:22:07.307
What kind of things did you do?
00:22:08.464 --> 00:22:08.806
Yeah.
00:22:08.806 --> 00:22:13.051
So let's say, some of the things that I ended up doing were I did the painting.
00:22:13.051 --> 00:22:29.347
So the house was parceled as a three bedroom, but the third bedroom upstairs you'd have to walk through the master or the primary bedroom to get to it.
00:22:29.347 --> 00:22:35.585
So it's like either make it in which smaller to create a hallway, and then it would have been a super tiny bedroom.
00:22:35.585 --> 00:22:39.267
So I was like well, this isn't a work, so it was actually her idea, that's his idea.
00:22:39.347 --> 00:22:42.551
That was like why don't we turn this into a primary?
00:22:42.551 --> 00:22:47.428
Let's see like a bath, like it's a great idea, so anyway.