Horder/Prepper house in Puyallup Washington

[Timothy Tooker]

The way we came upon this house was interesting. I was talking to my contact for the auctions and he asked me how much profit I needed to make for a deal to work for our company. Since it was becoming winter and we needed to keep our workers employed, I told him that we needed a minimum of $10k profit. He told me they had a house that was sitting on their books and they were doing a Thanksgiving special (waiving their finders fee). I got the address and it turned out to be roughly 6 min drive from my house. Below are the numbers he gave me on the house.

Rambler

3 Bed, 1 Bath, 1069 Square Feet, roughly .25 acre lot, Occupied house

Purchase Price: $141,000

Renovation: $25,000

Finders Fee: $0 (waived if I took it that day)

Resell: $205-$215 (depending on finishes)

Offered to sell it for me for free

So here is the initial numbers I put together.

Purchase Price: $141,000

Renovation: $35,000 (I always add onto the number they give me, just to be safe)

Closing Cost: $15,000 (7%  3% to buyers Agent, 1% to selling Agent, 3% closing cost)

Holding Cost: $11,700 ($2,700 [points], $1,200 insurance, $7,800 for 6 months of Interest)

Potential Profit: $12,300 (plus we finance our own renovation and pay ourselves)

This is what it looked like:

Next Post I will explain and show the demo/design and how we planned to add value to increase profits