We finally recorded and closed today. It took almost 3 months since we originally opened escrow to sell. The buyer was FHA and the lender found out later about the 90 day flip rule so had to close and reopen the file again. Fortunately, the buyers really liked the house so they were OK paying for a second appraisal. Then at the last minute the lender requested yet another (a 3rd!) appraisal, the reason being that the purchase price was less than half of the sale price and it was a HUD requirement. That's one thing I learned. So here are the numbers:
Holding, closing costs & misc: $19,000
Net Profit: $40,000
Some pictures of the finished product:
looks like a nice cozy spot. congrats.
Congrats @Han Oh , what area of SoCal was it located in ? I didn’t see it in original post . Can’t think of any areas that cheap these days .
@Joseph M. It was in Victorville. But even in Victorville, I consider myself lucky to have found a house for $65K.
@Han Oh yeah definitely you are right especially these days .
Did a quick search on Redfin and small homes look to start at $120k now on MLS.
Which is still much cheaper than LA or OC countries .. but still .
Are you looking to do more flips in SoCal ?
@Joseph M. Hi Joseph, sorry for the delayed response. Yes, I am focused on doing flips in SoCal, especially in the IE but given that it is extremely hard to find and acquire good deals these days, I'm thinking about expanding into the LV area as well.
@Han Oh yeah seems tough in the SoCal market.
It’s kind of bad to say maybe but it would be nice to see a little distress at least .
There is a Facebook group by Luke Weber ( he wrote a book called the flipping blue print) .. it’s pretty good . He’s active on there and he’s based in Vegas but flips all over the country which is pretty interesting .
There are many other flippers in Vegas and elsewhere on there so might be helpful to you if you are looking into Vegas .
I remember when the banks were dumping REOs on the market in Vegas daily for under $50k .. those days are long gone of course . Market sounds hot there too but I can’t imagine it’s crazier than SoCal to find a deal .
That’s the FB Group link
Congrats! Looks awesome. Best of luck on taking down the next one.
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