~$25,000 Profit on a $72k Fix and Flip

21 Replies

This property was a typical run down rental that you see frequently in San Antonio.

It is a 3/1 and was built in 1951.

I bought it through a TX contact, and we did a full rehab and flip. It took about 70 days to finish. My contact there is a licensed agent and investor. They did all the work and did a solid job. They sent me pics every week of progress. 

The numbers on this deal:

Purchase Price: $72,000 cash

Rehab Costs:

  • Kitchen Granite: $1300
  • HVAC upgrade: $500
  • Electric Fixtures: $800
  • Interior finish: $2300
  • Bathroom: $800
  • New floors: $2800
  • Dumpster: $1000
  • Deck: $3000
  • Microwave oven and elec: $600
  • Rotten wood removal: $895
  • Deck stain: $595
  • New sod: $1795
  • Shutters: $295
  • Concrete stain: $495
  • Mail box: $95

Total rehab: $17,270

Total cost: $89,270

Sold price: $115,000

Closing costs: ? still need this number

Profit: ~$25,730

DOM: 150

Very nice, the bathroom tile looks great! (Nice deal too ;-)

thank you. :)

Looks Great

nice work!

Excellent work!

I'm assuming those two cabinets above the shower were pre-existing? It looks like they're too high for the average person to reach and really utilize. I've never seen that before.

yes sir they were pre existing cabinets. 

What soft costs do you mean? I had no holding costs as it was cash. What else should I include? Thanks!

RE Commissions - typically 6% of the selling price, I don't see that anywhere 

wow you kept those old kitchen cabinets?

That's interesting.

Account Closed

  soft cost =  RE commish.. tax's while you held it.. Insurance.. utilities .. Selling  closing costs.

I use as rule of thumb  10% of gross when I do a quick look at properties

but to break it down

6900    6% commish

1000    tax s for 6 months property taxs as we know in texas are sky high.

750      builders risk policy

500     utilities  got to have those to work on the house

1200    sellers closing costs  ( not sure if you included buyers closing cost in your pp)

500      misc

10,800     10% of gross would be 11,500 so pretty close there.

89,270      PP

100,120 Sale price of 115,000 equals profit of 14,800.00 which equals a 40% APR for time held...

Also if you bought a rental in Texas for 90k that cash flowed positive say 250 a month. you would have to own it 59 months to get this same return.. Of  course you have some tax bene's and your tenant is paying down your mortgage so you would have hopfully some money to recoup there on a sale... But if you did this every 6 months for the same numbers

in 60 months you would have 148,000.00 in profit  as opposed to 15k in profit on cash flow.

It is for those very reasons that I personally like flipping homes..if you have deal flow and can keep your numbers in check its pretty sweet.. and in Texas you only pay federal tax if you live there. 

So this is a lot better than the other deals you post about selling crappy homes on contract to homeowners.... and all that goes with it.

Thank You, it's nice to see numbers with the work. 

Welcome to BP.

Great job.

thanks guys.

Scott, yes they decided to go with the old style look. I dunno maybe they should have swapped them out, given they put in the nice granite and back splash? 

yes I need to figure out the soft costs you mentioned guys, thanks for that. I should come out over 20k profit though. I'll take it. 

Everything looks great (apart from DOM)—congrats Account Closed

great job. Thanks for sharing.

Also thanks @Jay 

@Jay Hinrichs for showing your soft calculation

Originally posted by @Account Closed :

Scott, yes they decided to go with the old style look. I dunno maybe they should have swapped them out, given they put in the nice granite and back splash? 

they didn't even put hardware on the doors.  That would have been a big turnoff to me.  Not that they are not there but that a person rehabbed a house and didn't put them on.  I would be concerned of "what else" they didn't feel the need to upgrade that you might not be able to see.

Again always cover the fridge.  Its a terrible look to not have it hidden as much as possible

Account Closed

Nice job.

Sure, you may have had cash in it for 220 days - but an extra $20k pre-tax, $15k (37% annualized) after tax is a good thing.

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