First flip in Fresno, CA closed today....$53,956 in profit!
Hey everyone,
I wanted to share the recent success on my first flip which just closed earlier this afternoon, hopefully it can help to motivate someone who might be on the fence about taking the first step towards accomplishing thier REI goals.
My wife and I have always wanted to get involved in REI and finally decided to get serious about taking action at the beginning of the year. We did not have much luck finding any good deals and decided to try and come up with a creative solution. It turns out that my brother in law owned a rental property with a considerable amount of equity in it that had been rented for the last 1.5 years. We approached him and his wife about the possiblity of partnering up to flip the property. We would cover all the costs, including the loss of rental income, which would all be repaid after the sale of the house and we agreed to split the profits and roll everything into another project.
We got the keys from the tenants on 3/10/15, listed on 4/20/15, and closed escrow today. Here are the particulars on the deal.
Mortgage balance= approx $73,000
Rehab expenses/holding costs= $31,318
Sales price=$175,000
Net profits=$53,956
Here are some before and afters:
Everything about this project ran smoothly with the exception of 2 things. We originally listed for $179,999 and actually had multiple offers at or above asking. Unfortunately the appraisal came back at $175,000 so we ended up having to sell for a little less than expected. We also had some termite damage show up during the inspection and we had to replace some rot and fumigate the house which cost about $3200. Overall I could not be happier with the way things turned out and am looking forward to starting the next project as soon as possible.