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How a 27-Year-Old Home Flipper Transformed a Derelict House

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How a 27-Year-Old Home Flipper Transformed a Derelict House

PHOTOS: How a 27-Year-Old Home Flipper Transformed a Derelict House

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In total, the kitchen cost $20,000 to renovate.
Courtesy of Mike Neuman

  • Michael Neuman, 27, and his fiancée Jacqueline spent $15,000 on a home-flipping course in 2021.
  • In a year and a half, they’ve completed eight flips in Pennsylvania, New Jersey, and Ohio.
  • Neuman broke down the latest flip, which he bought for $190,000 and is now for sale asking $415,000.

In August 2021, Michael Neuman felt like couldn’t “advance financially” any further as a personal trainer.

Neuman was also looking for a career where he could primarily work from home, mostly to care for his newborn baby.
Courtesy of Mike Neuman

So Neuman and his fiancée put $15,000 on a credit card for a 3-week home flipping course with influencer Jake Leicht, who broke down the steps and financing strategies to make a career in home flipping.

Neuman painted the brick exterior of this Philadelphia home, his eighth flip, gray based on recent sales he tracked in the neighborhood.
Courtesy of Mike Neuman

On his first flip, Neuman was able to turn a $112,000 profit on a three-bedroom home in Willingboro, New Jersey. For this current project, his eighth, he purchased a Philadelphia home for $190,000 and invested another $130,000 in renovations. It’s now on the market for $414,900.

Neiman’s first project was a “cosmetic flip,” he said, whereas this Philadelphia renovation was far more ambitious.
Courtesy of Mike Neuman

Neuman expected the Philadelphia project to take 20 weeks, but it stretched into 30. He said a key lesson he’s learned is to not over-schedule your contractor in case mistakes come up during any step.

Neuman estimates he spent $5,000 on electrical installation and $10,000 on a new panel wire.
Courtesy of Mike Neuman

The chaotic nature of flipping has been an adjustment for Neuman, who said he’s gotten used to always being on call during renovations.

The $9,000 kitchen cabinets were among this project’s priciest splurges, Neuman said.
Courtesy of Mike Neuman

Neuman said he had to budget extra for unexpected costs and repairs that came up during construction, like a floor that ended up needing to be evened out.

Neuman estimates he spent $15,000 total on drywall for the Philadelphia flip.
Courtesy of Mike Neuman

Neuman has hosted three open houses and dropped the price about $5,000 to $415,000. Given higher mortgage rates, he said, buyers are less willing than before to jump on a property the minute it hits the market.

Neuman also works with his broker, a former coworker from his the gym where he worked, to understand what buyers are looking for.
Courtesy of Mike Neuman

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