Diary of a Cleveland, OH Flip

[Zoran M.]

Hi all, 

With so much interest in Cleveland, I thought I'd share with you a flip we're working on in the eastern suburb of Cleveland Heights.  The home is 3,800 sq. ft. (large third floor) and was built 100 years ago.  It's been owned by the same family since it was first build (a rarity in Cle Hts).  The property is located near the Cleveland Clinic, University Hospital, University Circle, Case Western University, museums, etc. 

I fell into this property as a result of a relationship I established with a local investor. He's been my "mentor" for the last year and after seeing my success in purchasing several rental properties, he decided to let me manage two flips for him. He purchased this home two years ago with the intention of flipping, but shortly thereafter bought a large apartment complex and put all of his crews on that job,  As a result, this home has been sitting vacant. He's given me extremely favorable financing terms. 

Here is a shot of the exterior:

Here is a quick look at the financials:

Purchase Price: $72,000

Rehab: $131,000

Holding Costs: $7,000

Interest: $10,500 (my only out of pocket expense) 

Closing Costs: $23,000

Selling Price: $289,000

Projected Profit: $45,000 or 20%.  Cash on cash return of 429%