First $100,000+ profit flip in progress
hi BP,
Just wanted to share a deal I have going right now. I paid $440,000 for a house in the Silverlake area of Los Angeles. The current layout is a 1 bed/1 bath. My plan is to redesign the house and make it a 2 bed/1 bath with indoor stackable laundry and a large living room/dining area/kitchen space. We moved the front door over a few feet to allow for more kitchen cabinets and the entire inside and outside will be renovated and new. There is also a 16' x 14' 1 car garage which I will be turning into a office/garage/studio flex space. That can be rented out for additional income (zoning is R3) for the new owners if desired. Market rent for the studio would be about $1100-1400/month in my opinion. Market rent for the house would be $3,000-$3,200 in my opinion as well. I will not be keeping this one, I will be listing it for $679,990 and hope it sells pretty quickly.
Total price paid was $440,000 and $4,000 cash for keys to get the tenant to move sooner than 60 days. Rehab is estimated at $53,500 but I think it will be closer to $60,000 which includes permits, inspections, staging, photos, etc. Remodeled comparables range from $660,000 - $800,000 in that area and usually sell pretty quickly once staged and listed on the MLS.
I put down $45,000 and got a hard money loan for $396,000 (monthly payments are $2805). I estimate 4-5 months for the entire project. If all goes well the profit could be north of $125,000, which would be my largest deal to date.
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wow! The numbers sound great let us know how it goes