2nd Flip - My Story

[Bryan C.]

Hello everyone,

Please feel free to leave comments. I already posted a story about my 1st Flip as an investor despite being in the military and stationed overseas. To recap that story I was able to partner with another investor/real estate agent in the Cincinnati area where we bought, rehabbed, and sold a property with a take home of about $12k each or $24k profit. During the 1st Flip the ROI of about 25% for 7 months of work (43% ROI if I calculated correctly). We had a few problems that took twice as long to complete.

It took 2 months to find out next flip and get it under contract (remember I am doing this remotely from England where I am stationed) because several possible deals were too tight on the #s from our calculations.  Our 2nd deal will look something like this:

Here are the projections:

Closed on property Jan 20th

6 weeks of rehab

list on market around March 1st

get it under contract and sold in April.  Just in time to celebrate Apr 15th Tax day!

Here is a look at the #s...

Purchase Price $43k

Closing costs $2.5k

Rehab $22k

Holding costs $1.5k

Selling closing costs $5.75k (about 6% of ARV)

Misc expenses/buffer $3.25k

Total all in $78k

Estimated ARV of $96k

$96k - $78k = $18k profit.  Split profit 50/50 for nice paycheck of $9k each!  Not bad for 3 months of work.  Turn around and do it again....  

Yes I am aware that this deal brings estimated total costs to 80% of ARV but I am very confident in this deal! I will post periodically with updates!