Hi BP Community,
I have been involved with BP for Quite some time now and although as an attorney, I have done hundreds if not over a thousand deals as an attorney. However, as an investor I was a bit more cautious until I really got involved with BP. I just completed my first fix and flip project (closed) in Bellwood, Illinois. I have another project I'm currently working on in Logan Square which is a new construction, that I am hoping will have even better returns. I was fortunate enough to have a great team of contractors that I work with, They provided me with solid numbers upfront and stuck to them. Here are the numbers on this deal along with some before and after pictures:
3 BR, 2 Bath, 2 Car attached garage, 2104 square feet
Purchase Price (including closing costs) $82,184.00
Sold Price $209,000
Total Rehab Costs $60,000 – Kitchen update, both the full baths, new flooring on the main level, new carpet throughout the house.
Total Closing Costs (including commission): $16,637.00
Total Profit: $50,179.00 ($209k - $82,184 - 60k - 16,637)
Total ROI: 35.29%
Total Project time line: 10 months June 2017 - April 2018.
The Buyer was obtaining FHA financing. This was a multiple offer situation and there were multiple buyers who were offering in the same ballpark (give or take a thousand dollars). However, the Buyer's FHA appraisal came in at $192,000. That would preclude anyone who wants to buy in the next six months using FHA financing from Buying for over $192,000 since the FHA appraisal sticks to the property for 6 months. This actually turned out to be a good thing. I rented the property out and have a tenant at $1600/month. I decided that I would refinance using the BRRR method and use this property as my first rental property. I am expecting it will cash flow me at least $500 if not more.
Here are some before and after pictures.
I have eerily similar numbers and situation on a flip just this week but I prefer to require conventional mortg
Personally I can do better ROI on 160k than renting for $1600/mo
Best of luck with yours