My first (current) house flip to free up $ for investing
Here’s how this adventure started… I am a home owner and planned on purchasing a multi family, renting out my single family house, and starting my passive career in real estate. The funds I planned on using as a down payment on my second property did not come through as planned, so I plan on flipping my current house. I am a CPA with a full time job and good credit.
Facts ($’s are approximations):
Home was built in 1959
Home has been owned 2+ years (tax free gain on sale)
Purchase price + landscaping + master bath: 180K
Appraised Value: 195k
ARV: 230 – 250K
Repairs:
- Refinish hard wood floors
- Paint
- Kitchen: Cabinets (refurbish used?), take out tile/replace with hardwood, countertop, open wall to living room (Just a window, not a wall demo as its load bearing), and new (or used) oven
- New interior doors
- Bath: Tile, vanity, countertop, toilet, reglaze tub
- Light fixtures, vents, plugs, switches
- Staging
- Potential updated electrical box (currently in good working condition)
- NEW LARGE window in living room
Investment
180K current
20K rehab
20K & closing costs realtor fees
220K Cost
There appears to be a possible 20K gain on my primary residence, this would free up approx. 30 – 50K cash to be used to jumpstart my real estate investing career.
I have not gotten quotes on the repairs yet, this is what scares me.If repairs end up costing 40K, it could eliminate the entire gain and I would be better selling now to pull the cash out.Please provide any and all thoughts/advice you may have regarding starting my real estate career.
Thank you in advance for your response!
Jon