Sold! House flip $83,000 in Profit
Hey Everyone! (all pics take before and after in same locations)
I wanted to share one of our recent success's with the BP community and hopefully help some of the newer rehabbers out there and give them some encouragement to keep going.
I bought this house in January earlier this year, its a Seattle based property on the south west side. This was by far the ugliest house in the neighborhood. We found the property via MLS as a Freddie mac home, after waiting for the first look to expire, we then had to battle with other investors to get the winning bid.
Our initial acceptance was at 175K, after inspection period we were able to re-negotiate surprisingly down to 165k. This usually doesn't happen here any more with banks since there is such competition here at this time (but we found extensive damage that was hidden such as the roof having three layers of roofing, the bottom which was cedar shake with ZERO sheeting at all).
Pre-purchase: 2bed/1bath 800 sqft finished living space with an unfinished 720sqft basement
After Rehab: 3bed/2bath 1520 sqft finished living space
Rehab consisted of: demo, re-wire entire house, move electrical panel and update, roof, siding, hardwoods installed, build new bath in basement, add master bedroom in basement, add washer dryer closet in basement, remove upstairs wall and add beams, remove addition in back and rebuild deck, fencing, landscaping, EVERYTHING, you get the idea.
This house did take a full month longer for rehab then anticipated, but it all worked out in the end.
The Bad: Budgeted 75k for rehab, ended up 88k, anticipated 60day rehab, took 90days, termites, no HVAC where we thought, Water heater was leased so it got removed after buying it (didn't know that), had to fire a contractor and have others fix his bad work, bath tubs were lain incorrectly and was not discovered until we were ready for tile...
The Good: House turned out WAY better than thought, the additional time for rehab gave time for neighborhood market to increase as well, low inventory at time of listing, sold in 4 days.
Numbers: Purchase: $165k (CASH)
Rehab: $88k
Holding costs: roughly $2500
All selling/closing/realtor/staging/misc: $35k
Selling Price: $369,000 with no concessions
Net Profit roughly: $82,556
