Broke even on my first two flips - need advice from experienced flippers

Broke even on my first two flips - need advice from experienced flippers

Member since 2024 · 4 posts · 6 votes

Hello flippers,

I'm relatively new to this and have broken even on my first two flips. Could anyone experienced with this help review the numbers from my latest flip to see where all I'm going wrong? I should mention I paid a GC for the rehab work, who charges $18k for managing the project; I have a full time job, so unfortunately I don't have time to manage it myself.

Purchase price: 415,000
Repairs: 117,659
ARV: 605,000
Hard money loan: 423,500 (11.99% interest)
Holding time: 4 months
Interest: ~$14k
Agent commission: 4% (3% buyers, 1% sellers)
Staging: $2400
Design: $3000
Builder's Risk: $3000
Property Tax: $4000
Utilities: $900
Other purchase fees (loan origination, title, survey, appraisal, inspection, lender fees, etc): $16,507

Thanks!

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
1y
Quote from @Logan Howell:

Hello flippers,

I'm relatively new to this and have broken even on my first two flips. Could anyone experienced with this help review the numbers from my latest flip to see where all I'm going wrong? I should mention I paid a GC for the rehab work, who charges $18k for managing the project; I have a full time job, so unfortunately I don't have time to manage it myself.

Purchase price: 415,000
Repairs: 117,659
ARV: 605,000
Hard money loan: 423,500 (11.99% interest)
Holding time: 4 months
Interest: ~$14k
Agent commission: 4% (3% buyers, 1% sellers)
Staging: $2400
Design: $3000
Builder's Risk: $3000
Property Tax: $4000
Utilities: $900
Other purchase fees (loan origination, title, survey, appraisal, inspection, lender fees, etc): $16,507

Thanks!


 Simple = paid way too much for the property. 

If you add up all those numbers above and include the $18k for the PM you are over the ARV.

You have $200k in costs including closing and commissions. 

For a house like this i would be around $350k tops. 

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