All Forum Posts by: Bryce Kephart

Evan, 

Good afternoon sir! Yes numbers are most certainly correct was just looking for some input. There is minimal work to be done on the second level to make this property a 4 bed 3 bath. The 26k has been broke down and itemized already as well. Closing costs seem to be lower in our area based of my experience and what I've seen. But yes I agree on not being able to get much for $26k I couldn't agree more. I appreciate the input !

North Dakota ! 

🔑 Project Summary:

• Purchase Price: $220,000
• Repair Costs: $26,000
• Other Costs/Fees (inspection, mortgage, doc prep, wire): $1,150
• Annual Insurance: $1,200
• Closing Costs (sale): $5,000
• Total Net Cost (including interest): $222,350
• Total Cost After Repairs: $248,350
• Sale Price (After Renovation): $390,000
• Net Profit: $136,650
• Return on Investment (ROI): 55.02%

💰 How the Investor Makes Money:

• The home is bought for $220,000 and fixed up with an additional $26,000.
• The post-repair value (ARV) is estimated at $390,000.
• This creates a value spread of:
  • $390,000 (sale) - $248,350 (total cost) = $141,650 gross profit

• If the investor uses financing, they can leverage other people’s money (OPM) and potentially reduce cash out-of-pocket. This increases the ROI even further.
• Even with cash purchase, a 55.02% return on $248,350 is exceptional for a short-term project (usually under 12 months).

• Unlike rentals that yield slow returns over years, this is a short-term flip.
• The annualized return (if completed in under 12 months) is 55.02%, which beats stock market averages or typical rental yields.

• Only $1,200 annual insurance and no mention of taxes/utilities being major costs.
• Assuming quick turnover, holding costs are very low, preserving profit.

• With an after-repair value of $390,000 in a lower-cost housing market, the property is likely positioned well to sell fast — possibly even to a cash buyer or with conventional lending.
• There's potential to sell above asking if improvements increase desirability and competition.

📊 Return Breakdown:

📈 Exit Strategy: Fix & Flip

• The strategy here is clearly fix & flip, not a long-term rental.
• Fast return of capital with high ROI makes it appealing to investors who want quick liquidity and scalable profit potential.
• Repeatable model: If this same model is repeated 2-3 times per year, the investor could see $300K+ annual incomefrom similar deals.

✅ Why It Works:

• Strong margin between cost and resale value.
• Efficient repairs that don’t overrun budget.
• Well-priced acquisition.
• Tight control on costs and minimal carrying risk.

🧠 Optional Enhancements:

If the investor wants to increase profit even more:

• Use hard money lending to reduce upfront capital outlay.
• Sell off-market or FSBO to reduce realtor commissions.
• Add value-enhancing features (e.g., energy-efficient upgrades, curb appeal).

@Steven Jefferson

Write it up in the lease so the tenants pay water & utilities unless of course the meters aren’t separated.

@Matthew Rogers

Connect with me !!!

Awesome thank you !!!

I am looking to connect with other local investors maybe start meetings held in Dickinson,Nd

Investment Info:

Single-family residence buy & hold investment in Dickinson.

Purchase price: $60,000
Cash invested: $13,000
Sale price: $80,000

3 bed 2 bath

What made you interested in investing in this type of deal?

generating passive income

How did you find this deal and how did you negotiate it?

contacted owners and made offer

How did you finance this deal?

saved for down payment

How did you add value to the deal?

renovation

What was the outcome?

in process

Lessons learned? Challenges?

a lot of work by myself

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

landlord services

Nicholas same here sorry would not be able to help you as I also do sfh best of luck 

hey i live in dickinson nd aswell also am a real estate investor i might have a property you would be interested in