I can't get my numbers to work for me!

4 Replies

Hi BP! I have a deal that I am looking at for a fix and flip, and every time I put in my numbers I am loosing money. I am being very conservative and have to use hard (expensive) money to do the rehab. Could someone take a look and give me a second opinion letting me know if I am missing something or if I am being too conservative with my numbers please? Thank you. 

Section One: Property Information
Property Address
City
Bedrooms3
Bathrooms2
Heat SourceNatural Gas
Purchase Price$190,000.00
Estimated Repair Cost$40,000.00
Estimated After Repair Value$270,000.00
GarageNone
Laundry RoomNone
Year Built1930
Wiring ConditionAverage
Plumbing ConditionAverage
Square Footage1250
County Appraised Value$240,000.00
Section 2: Hard Money/Fix N' Flip Calculator
Purchase Price (B19)$190,000.00
Purchase Closing Costs$1,500.00
Repairs (B20)$40,000.00
Holding Costs (W/S/G/PUD/etc)$3,000.00
Down Payment (Skin in the game)$90,000.00
Total Invested$234,500.00
Total Cash Needed From Lender$144,500.00
Points charged by lender11.5
Points added to loan$16,617.50
Total Loan Owed Lender$161,117.50
After Repair Value (from B25)$270,000.00
County Excise Tax Rate1.53%
Excise (sale) tax amount$4,131.00
Realtor Fees 6%$16,200.00
Our Closing Costs$1,500.00
Their closing costs (they'll ask)$2,000.00
Total debits at closing$23,831.00
Total cash received if sold now$246,169.00
Total Money in The Deal$251,117.50
Total Profit (pre-income tax):-$4,948.50
ROI based on 6 month flip-11.00%

The reason why you can't get it to work, is because it doesn't work.  This isn't a deal.  You are correct when you say you will lose money.  Move on to the next opportunity.  This one is a "dog".

@Aaron Montague thanks for taking a look.  I did run the numbers at $150k, and I ran the numbers to see what was the highest I could go to be profitable and it was $158k, but this deal was brought to me by a wholesaler and they weren’t budging unfortunately. 

Unfortunately I don’t have any family with that kind of money. I am still looking for the deal that will work for me.