I keep watching these fliping reality shows, and I wanted to vent a little bit...
I bought a run down forclosed "crack house" in a questionable neigborhood. I paid $50,000 for a 3 bedroom 2 bath house. I put $25,000 into it. That money went to a completely new heating system, tile floor in the kitchen, appliances, refinished the hardwood floors, installed energy efficient windows, new entry doors, new vinyl floors in both bathrooms, new tub and surround, refinished countertops, updated cabinet hardware, crown moulding, light fixtures...etc. Basically a COMPLETE renovation. I worked a full time job, and I did all the work myself except for the plumbing (i had no experience, just read a few books). It took me 6 months, but i was living in the house so i wasn't paying rent somewhere else. I was sleeping on a cot huddled next to a space heater in the cold minnesota winter with no heating system in the house, and half of the windows busted out. My payments were $585 a month including PMI and escrow. In the end after 6 months, my house was conservatively appraised at $110,000 (that took into account the slow market . I never once thought about the cost of materials, when my cash ran out i used my credit cards, but I went middle to high quality on everything, and in the end I was looking at a profit of $31,000. And the part that really bugs me is that the guys on the show make more money than I do, but they still whine about costs... I make less than $25,000 a year at my full time job, I drive a 02 dodge neon... these guys drive mercedes, and have $80,000 a year incomes... and they whine about $800 for tile...

Thats how they accumulate wealth. By cheating the labor force. you made prolly 8 payments on your note. They don't spend that on labor for their projects. They get the material cheaper cause they buy so much. A few of my clients. Pay me to go into homes shceduled for demolition to take out all the toiletts, tubs, cabinets, light fixtures. looking a 31K profit You need to roll that into a primary residence or you'll be subject to income tax. being self emplyed thats a 38% bite. 11,400 you owe in taxes for making the 31K. so your net will be 19,600.00

I just cant believe that they do such shoddy work and still make such huge profits. Granted, I am not in the best market, Duluth sems to be more of a rental market, but I am proud of the fact that 6 months of hard work got me enough equity to buy my next property, and start working my way up the "property ladder." I would wake up at 9am, work on my house till 2pm, work at the restaraunt till 1130 or mid-night, sometimes later, then go back to working on my house till 3-4-5 sometimes 7am. Then catch a few hours of sleep and do it all over again. And I only made 30K. These morons hire day laborers, work a few hours a day, and flip a house in 2 months for 60-70 or 300K... oh well... just sour grapes i guess.

You should get some solace from the fact that you did make a profit and that you're probably solvent. Personally, I doubt that half these people are nearly as prosperous as they look (as in heavily in debt) and that those who actually did move onto their next project are hurting right now. A scary number of people out there are just a paycheck or two from living on the streets.

I get the feeling you're a lot better off.

Hey reray :
You spent 6 months renovarting..Keep in mind as you work you way up the property ladder. Your note on the property will get higher as well. What once used to be a 600 payment becomes a 2500 payment. 6 months at 2500 is a big nut my man. For a do it your slefer.

The goal is to get into it full time so I don't need six months to do a renovation. Once I get another property or two under my belt, I plan on quitting my job and going pro so to speak.