First time flipper

[Daniel Rodriguez]

Good evening everyone, so I currently have $150K to invest in my first flip. I just wanted to pick some brains to see if I’m think about this the correct way or is there something I am overlooking. 

$150,000 to invest

Buy a fixer upper for $200,000, put $40,000 down and I figure another $10,000 for 6-7 months or mortgage payments. So that leaves me with $100,000. I figure (complete made up number) let’s say $80,000 in renovations. I’ve done my research and say I can sell the house for $350,000. I would make my $150,000 back and make $200,000 but after taxes say $150,000. Does that sound about right or is there something I’m overlooking. Looking for some mentorship here or experience advice here. Thanks 

[Obed Calixte]

Ryan above hits on alot of the key numbers.

I will also add that you would need to consider sell costs which can range from 3-8% (depending on commissions, credits, staging  etc). There are other costs to consider such as utilities etc but we'll focus on the bigger numbers.

With those numbers you'll be closer to 25K before taxes.

Also @Daniel Rodriguez - BP has a fix and flip calculator that you can use to run your numbers on. 

There may be a limit on how many times you can use it if you are not a PRO member but it's a great start.