Looks great. I was wondering what you learned or would do differently to have made a little more? 13 k is good but what limited it? was it the purchase price? The rehab estimating? The hold time? Interest rate? Sale price? Just curious but still a great achievement. Thanks for posting.
Scott, what limited it was timing, mostly. 1st, FHA has that stupid 90 day rule, so the first few offers we received, we had to turn down. 2nd, we had a good offer from a USDA buyer, they loved the house and went almost to the end of due diligence and somehow saw the house in it's "before" state on Zillow and thought there had been mold in the house. There wasn't. They backed out of the deal costing us valuable time. 20 days later, we received an offer at a lower price and accepted it. That alone lowered our yield by $6k between the lower offer and our holding costs for another 20 days.
@Account Closed What did the timeline look like? Did holding costs hurt you because of the total hold time? Rate/Points? Or did you have penalties put in for going past some set amount of time with your lender?
Holding costs hurt us because of the interest payments being extended longer than expected as well as feeling like we had to accept a much lower off to move the property off our books.
@Account Closed congratulations on the flip! It looks great and its motivating, thanks for sharing the experience. A lot of good info for people starting out.
When you first bought the home - did you do your research on the ARV values for the area? The reason I ask- if the house is 2200 sq ft under air - it works out to $66/ft retail -for a nice upgraded home. I'm not familiar with Austell retail prices - is this the market value for Austell? Just curious.
Looks great! Thanks for sharing. Any idea how to get rid of the "before" pictures on Zillow next time?
Justin, if you claim the house as yours on Zillow, it allows you the opportunity to delete the pics. We did that on the second go-around once we found out why the first buyer backed out.
When you first bought the home - did you do your research on the ARV values for the area? The reason I ask- if the house is 2200 sq ft under air - it works out to $66/ft retail -for a nice upgraded home. I'm not familiar with Austell retail prices - is this the market value for Austell? Just curious.
The home isn't in Austell. But you're right, it was worth more than $145k, we just had to get to off the books! If we had the luxury of waiting, I'm sure we could have commanded $150k-$160k.
@Josh Hooper I work with a contractor in Atlanta-Metro area we've been tied up with renovations recently. I want to help you with your journey investing in the area. I have a 3/2 in the Pittsburgh area under contract. PM me if a can be of any help. Thanks