First SFR Rehab is complete!
Hey There; we just completed our first flip this week. We gained a lot of lessons learned from this one. We also made some money on it, so that is good too! Definitely looking forward to the next one. It took 6 weeks to complete. Ok, first the numbers:
Purchase Price at Auction: $35000 + 10% buyers premium ($38500)
Rehab Costs: $32190
Closing Costs: $6380
Sales Price: $90000
Net: $12930 or 16% ROI
Seems like this is in the ballpark of where we want to be. Ok, so lessons learned. Lots of fees and costs that nibble away at the bottom line: Utilities - a/c ran constantly at 70 degrees with doors wide open, running power tools, etc, so that added up to big utility bills. Closing costs - on the front and back ends attorneys' fees and state/county taxes. Materials - could have saved on a bunch of items, now that we know where to go (we bought all the materials and also did the landscaping). Labor - definitely doing cost-plus next time. We were over-budget on labor. Anyway, it was a lot of fun and it was a success.