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Updated over 3 years ago, 07/28/2021

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3
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0
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Wesley Washington
  • Rental Property Investor
0
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3
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Calculating Profit House Flip

Wesley Washington
  • Rental Property Investor
Posted

Hey everyone, I have a question in regards to how profit on a flip should be calculated, with a hard money loan. I used round numbers to make the example more simple.

PP: 200K

Rehab:100K

Sale Price:400K

Because I have a HML, they are covering 100% of loan, so in this case $100K. Since I am paying $100K for the rehab but being reimbursed 100% of it, is my profit 400K - (200K + 100K - 100K)??? Or is it still $400K - (200K + 100K)??

Thanks

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