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

[Account Closed]

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

[Jay Hinrichs]

@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.