Once a "Buy and Hold investor" always a "Buy and Hold investor"
Hello BP,
I purchased a house Oklahoma City in April that I stumbled upon on craigslist. Purchase price was 43K and I spent 28K on a complete rehab (See pics below). This was supposed to be my first flip...but after the rehab was completed, I could not part ways with it and decided to lease it instead. Lease price was $1000 and similar houses sell for 105K (actual sales). Because my house is a complete remodel, I could potentially get up to 110K...So a potential 40K profit...Sweet. Another reason why I decided to keep it was the title seasoning requirement for FHA loans. After I learned that I would have to pay for one of the two required appraisals, deal with a potential low appraisal since flips do not get the best value from appraisers, and have to submit receipts to proof rehab cost and improvement; I decided to just lease it for a year and skip all that hassle.
Here is my rehab cost breakdown:
| $3,500 | Roof (Labor and Material) |
| $7,390 | Materials ( Tile, Paint, Sinks, Faucets etc...) |
| $6,500 | Labor (My contractor is the best) |
| $500 | Kitchen cabinet Doors ( Replaced the doors only) |
| $2,700 | Front/Back concrete pad |
| $1,300 | Appliances (Stainless steel range, MW and range) |
| $3,470 | Heat and Air ( New 13 seer Heat and Air system installed! Brand is Goodman) |
| $1,400 | Wood floors (250sqft living room/ Handscrapped wood floors+ floor leveling) |
| $1,300 | Carpet ( Three bedrooms) |
Next project is already under contract and it’s a probate purchase. A rinse and repeat. But the purchase price is a little higher at 56K with a 15K Rehab cost. Comparable are selling for 98K. So a potential of 27K profit...only if i sell it :-)
Thanks BP community and Happy Investing.