All Forum Posts by: Pavel Sakurets

In our hot market it's anybody's guess how much a fool would pay...but anybody with a reasonable mind wouldn't pay over $175K in its as-is condition.  I wouldn't have paid that, there was just too much risk and at that time there were no comps to support a $525K exit price.  More like $450K.  So I'd say that $75K of that profit was a gift from the market.  When buying, I don't underwrite for appreciation.

@Pavel Sakurets 

  PS we lost money on deals for SURE... its not all wine and Roses... most of my bigger loss's though have come on development deals were I might have spent 10 to 75k in due diligence then walked... Has happened many times to me.. Its the cost of doing business that is why when I do land a development deal there needs to be some serious money in it. to make up for the hundreds of thousands I blew on DD on deals I never bought ... :)

My first flip - bought a house in '13 for 84k and sold it this year for 235k. Due to my inexperience with contractors and trusting them too much, it took me almost a year to flip it due to endless delays. In the end, the delays worked in my favor because the market in Chicago shot up during that time. When accounting for rehab costs and holding costs (used a HELOC on my house to buy it), I cleared about 75k in profit.

I joined BP to pick up tips from the pros, but it looks like I got very lucky on my first one and probably shouldn't expect to do another deal like that anytime soon. 

Finally, the moment you've all been waiting for!  Escrow closed today, and the numbers are in.

$525,000 Sales Price

- MINUS -

$125,000  Purchase Price

$185,327  Rehab

$13,752 Borrowing Costs

$4,562  Insurance/Property Taxes/Utilities

$26,250 Commissions

$1,356 Closing Costs (buy side and sell side)

$168,753  Net Profit

This one worked out pretty well, I'd say.  Someone asked me earlier in the thread if there is anything I'd have done differently.  The answer is YES, I would have done the air test before putting the house on the market.  I had an offer the first weekend it was listed, the offer was $540,000.  The buyer backed out when they saw the disclosures, but I think they might have moved forward if I'd have had that air test to show them.  That mistake cost me $15K in additional profit.  Live and learn, I guess, but it doesn't change the fact that this was a pretty successful flip.

I'm ready for another one of these!

Didn't bit my goal but happy with the results. Found 130k with no points ! (Interest only) for anyone who kept us with this today :)

Based on your numbers you should drop the price to $100,150.