Find the MONEY...please

[Devin P.]

Some please let me know if I'm going crazy or just making countless errors in my math.

I am confused beyond anything on my current situation and would much appreciate some help. I just flipped my first home. I used the Flip Calculator in Bigger Pockets and ran numbers time and time again. Every time I run them I get final profit of around 17,000. It was originally 30,000, but new comps and renovation expectations increased the cost to flip the house. I am just glad we didn’t loose money. But I am completely dumbfounded by the number now and have no clue how we are ending up with more than we anticipated.

Long story short we should be getting 17,000 and instead we are still ending up with around 29,000 and I have NO idea how. I assume it has something to do with the loan we used (Fannie Mae Construction Loan). We had roughly 23,000 tacked on top of the loan for construction renovations. They

Made checks out to the wrong companies, and took over a month to attempt to send me new checks so I simply used my own money instead of utilizing the draws from that escrow. Since we never used that escrow, we are being cut a check in the amount of 23,000.

The purchase price was 170,000.

Closing was 9,000.

Renovations were 44,000.

Sale was 272,000.

Closing at sale was 19,250.

We put 20% down on the property. Should have been 34,00 but ended up being 38,000 with the construction costs tacked on. The total loan was 193,000 with 38,000 down making principle of 155,000.

After paying off loan for 8 month the principle is down and total payoffs net to us getting roughly 99,000 back at settlement today.

25,000 of that goes back to family for borrowing money.

43,000 for renovations

25,000 is what I put into the property of my own money

That leaves 6,000 which for one isn’t the 17,000 that the calculator computed so I assumed I made an error when typing numbers into, yet I just used the same numbers I provided.

Holding costs were roughly 1700 for 240 days.

Here’s were I get even more confused. So the profit is 6,000 PLUS we get the draws back in a check in the amount of 23,000 which totals 29,000.

I am lost in the numbers and am not sure if I am missing something or what happened, but we started out with 25,000 and now we are ending up with over 50,000. I am not complaining, I just want to know where the hell the money came from in this scenario and to do it again if it worked to our advantage. Did that money come from somewhere that I already put towards the property or am I literally making more money than I should be? I've been at this for hours. I know the secret is in the construction loan.