House #3 in CT Success
As with my previous two threads, I wanted to post about my latest success, house #3. This house was an off market home. I got wind of it through my attorney. It was in his family and after a death the house was vacant and in need of a lot of work. The house was basically 1959 original. At the time of my original viewing, the owner was having an appraisal done. I ran my numbers and my offer was under $100,000. The appraiser came back around $160,000... Needless to say I did not want to insult the owner, and let them know I wasn't able to make an offer.
Fast forward a few weeks and I get a call stating that another flipper was offering them a low number, and continuously calling. They gave me an opportunity to rerun my numbers and make an offer. I did so, and they accepted. On to the stats:
1959 1740 SF colonial, 3/1.5 with an attached 1 car garage. Very nice property in a great neighborhood. My original number crunching showed a purchase of $91,500. Rehab would be $82,805.00, with a selling price at the end of $225,000.00. After all was said and done it showed me walking away with $40,107.50 (my target goal was $40,000 profit).
The final numbers were:
Purchase $91,500.00
Renovations $73,587.97
Sold Price $250,000.00
After closing costs, give back and all in the profit $67,571.60
So the largest area of savings was in regards to AC. This house had none, and I originally anticipated adding it. I really underestimated the cost to add it, and in the end learned that comps were 50:50 split on having it verse not. It did not justify $15,000 to install. The house had 2 showings day 1 on the market, and 1 showing day 2. After day 2 it was under deposit/contract. Got it closed this Monday, and I know the new owners will love the home!
Before Photos: