I did it! Flipped for ~50% ROI

I did it! Flipped for ~50% ROI

Investor · Almont, MI · Member since 2015 · 360 posts · 302 votes

First of all thank you to the BP community and @Joshua D. and @Brandon Turner for all that they've done for someone who was a total newbie 3 years ago!

I'm a "buy and hold" buyer with 4 rental properties in the Thumb (google that if you don't know where that is!) in beautiful Michigan! I bought a property intending to rent it out but the zoning had changed in Port Huron, MI and didn't allow it. My husband chided me for making that mistake (Darn it!!) but the wisdom on BP allowed me to figure out I could flip it and use the $$ to buy other things and that's what I did. After about 60 days on the market and we sold it for $65K after buying it for $30K from HUD with about $7K reno budget. We closed last week in a quick close and the cash feels so good in the bank account. I still can't believe it could be done but it sure can with the help of BP!

Now in addition to buying a rental in the right part of town (no duh!), as a reward I get to buy a cute "tiny house" on 3 acres by Lake Huron for $5K down on a nice land contract (so much better than buying an expensive purse or something)... I couldn't be happier!!

And now my husband has to eat his humble pie re: RE investing (plus a nice steak dinner on me) ;)

Before and after pics below!

BEFORE

(That's my tireless and patient RE Agent Paul Steward in the pic who puts up with my investing trials and tribulations)

AFTER

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Flipper · Milwaukee, WI · Member since 2016 · 66 posts · 12 votes
10y

First off, congratulations. That is wonderful news. 

I wish Milwaukee had a zoning board to limit or monitor rentals. I deal with buy, rehab and sell owner occupant properties and there is nothing worse than seeing a neighborhood going down the tubes because of rentals. 

When talking ROI I like to talk about gross ROI and annualised ROI. Gross ROI is just taking the net profit divided by your total investment. $25,000 net profit divided by $100,000 investment equals a gross ROI of 25%. This ROI does not take into account how long it took to earn your profit. If it took you six months, in theory you could then do two deals a year so your annualised ROI is now 50%, or $50,000 profit divided by the same $100,000 investment. If it took two years to make $25,000, your annualised ROI is reduced to 12.5%. Just a few extra thoughts based on some of the additional comments.

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  • Livingston County, MI · Member since 2015 · 88 posts · 23 votes
    10y
    Congrats Dante Pirouz that's awesome!! Keep up the good work. Love hearing success stories local, here in the Great Lakes state.
  • Rental Property Investor · Cleveland, OH · Member since 2016 · 69 posts · 108 votes
    10y

    well done!

  • Rental Property Investor · Phila, PA · Member since 2015 · 276 posts · 111 votes
    10y

    Awesome!

  • Real Estate Investing Entrepreneur · Palm Coast, FL · Member since 2016 · 5 posts · 0 votes
    10y

    Nice going Dante!  You did an awesome job, great motivation!

  • Railroad Conductor / Future investor · New Baltimore, MI · Member since 2015 · 130 posts · 40 votes
    10y

    Congrats! Keep up the good work

    Don

  • Indianapolis, IN · Member since 2016 · 75 posts · 8 votes
    10y

    This is Wonderful! Congratulations! 

  • Wholesaler · Chicago , IL · Member since 2016 · 7 posts · 0 votes
    10y

    Congratulations that is awesome!

  • Realtor · New Berlin, WI · Member since 2016 · 118 posts · 47 votes
    10y

    Percentages are great (Im a math major), but what really matters is a nice big check for your account plus the steak dinner!

    Congrats - awesome job!  You have to think creatively in this business.

    Also, thank for acknowledging your realtor - the right team of realtors, lenders and contractors makes a humongous difference in my humble opinion.

    Don't enjoy your new little house on the lake too long - off to new RE adventures you go!  So happy for you

  • Miami Lakes , FL · Member since 2016 · 23 posts · 5 votes
    10y

    Amazing!! I wish you can find spreads like this down in Miami but it such a monopoly down here!

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