My first Flip...Start to almost finish....
Hello all,
I'd like to bring everyone up to speed on my first almost Flip.
Over the past summer in S.E. Mi I bid on 4 houses, lost all , and as time past all 4 sat and eventually were priced lower than my previous offers.
Needless to say this concerned me greatly as I questioned my ability to
procede any furthure. In the course of this I met a great realtor. He new the market much better than me. I almost stopped my pursuit when he called me with a new listing his office just got. I stopped,looked, called and told him to make sure I got it. At this point I saw enough props to know a good deal when I saw one. This is what it was. Either poop
or get off the pot, as my Dad would say....
1955, 3bd,2 bath brick ranch, 1050sq ft. 2 1/2 car garage, on a cul-de-sac. House prev. sold in 12/2006 for 144k. I purchased for 67k after all
closings costs. Prev owner flooded property just before walking. Realtor
said after repairs quick sale price would be 115k.
So I jumped in, Partial remodel in kitchen/floor, Bathroom, basement drywall. Total paint top to bottom. City Inspections.. Wow what a blindside
there. 4 pages of stuff that cost me an extra 2500.00 not planned. Hired 3 different contractors and did the rest myself. After a full day at work.
So heres the money....
Purchase 67k ....used HQ in my house. I know crazy :goofy:
Repairs/carrying costs to date 10k... credit cards / cash.
Had house reappraised, came in at 128k.
Listed house for 114,900.00. 2 weeks later 2 full price offers. With a catch of course. Both buyers wanted $ back at closing? What the ? is that all about. I almost kicked back both. But after the realtor explained to me that minus the kickback both offers were for more than what I was hoping to sell my first flip. So heres the deal:
Accepted offer: 115k with 6k back at closing. Brokerage fee
and closing costs almost 9k. Approximate due to me at closing 100k.
Minus my investment of about 77k I'm looking at a profit of about
23k.
I'm kinda happy about this but vary scared of capital gains tax.
This deal should close in the next 30 day. All in all , not to bad for my first
flip. I've learned ALOT. Might even try it again. Hope this helps someone else get started.
I would also like to hear from anyone how I may curb the tax on this sale.
Sorry for the long post... Just had to tell someone about my first...
Thanks...