PHOTOS: How a 27-Year-Old Home Flipper Transformed a Derelict House
- 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.
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.
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.
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 said his best tip is to study recent sales in the neighborhood to determine what buyers want — and will pay for. Decisions like matching the kitchen backsplash to the island or making the faucet hardware gold came directly from what Neuman determined was currently trending with local buyers.
The chaotic nature of flipping has been an adjustment for Neuman, who said he’s gotten used to always being on call during renovations.
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.
Picking trendy finishes can be as simple as a $200 rain shower head, which Neuman added to the bathroom. Black tiles are also very popular with current buyers, he added.
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.