High Cost of new homes equals profit for flippers

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As most of you know Tucson is experiencing substantial growth. CAT is building new regional HQ that will provide 600 engineering jobs to Tucson with a projected $600 Mil. positive economic impact on Southern Arizona, Amazon will be building a 20 acre fulfillment center that will bring 2,000 jobs to Tucson, Geico’s regional office is staying in Tucson and they will be adding 700 new jobs just to name a few pieces. The new jobs combined with the fact that the median cost of a new build home in Tucson is currently $306,479. That is almost 100k higher than the June 2018 median price of $212,000. Because of that, we are seeing a clearly underserved middle class and blue-collar community. Individuals looking to flip in Tucson should be zeroing in on that market to provide value. I will post an example of a couple recent deals below. I would love to connect with anyone currently doing flips or thinking about doing them to discuss how we can make money and serve the community at the same time. 

Deal 1

Purchase Price: $160,000

Remodel Cost: $20,000

Total Investment: $180,000

Sales Price: 225,500

Closing Costs: $15,640

Net Income/ROI: $29,360/16.3%

Deal 2

Purchase Price: $85,000

Remodel Cost: $15,500

Total Investment: $100,500

Sales Price: $140,000

Closing Costs: $10,168

Net Income/ROI: $29,332/26.54%

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Thanks Ben! It's about time.

Originally posted by @Benjamin Riehle:

Great to see you on BP Brother!