Single-family residence fix & flip investment.
Purchase price: $245,000
Cash invested: $140,000
Sale price: $410,000
Total rehab, foundation, kitchen, baths, drywall, flooring, windows and insulation.
I am not sure what this post is. Is this a property you purchased that you are going to rehab, are you looking for funding, looking for a partner, project manager since it looks like you are in California, are you tryin to market this as a deal or are you asking other information about this property?
@Bruce C Keller That sounds like a problematic deal. It seems that the margin is 25,000$.I want my flips margin to be a great deal more. One big factor that most folks forget is taxes. Lets say your income tax bracket is 28%. Then the after tax profit is $18,000. Since you are in CA I am assuming that you will pay taxes on that profit as well. For simplicity, I will take CA income tax out of the equation. In all my flips, I want to make sure that the finished product turns out amazing so that I can maximize the value of the flip. For me, I have to calculate the time value as well. If that project took 3 months then you are looking at $6k a month... And then calculate the time that you met the contractors. I wouldn't touch it for $25k. Where did the flip happen?
Escrow closes on 10/11. This was our 1st flip, and believe me we made just about every major mistake we could, starting with selecting and inexperienced realtor in a market we were not familiar with. As the saying goes " some mistakes you only make once", very true. Having said that, we learned a great deal and will be moving forward with some hard earned knowledge.
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