Once a "Buy and Hold investor" always a "Buy and Hold investor"

[Amine E.]

Hello BP,

I purchased a house Oklahoma City in April that I stumbled upon on craigslist. Purchase price was 43K and I spent 28K on a complete rehab (See pics below). This was supposed to be my first flip...but after the rehab was completed, I could not part ways with it and decided to lease it instead. Lease price was $1000 and similar houses sell for 105K (actual sales). Because my house is a complete remodel, I could potentially get up to 110K...So a potential 40K profit...Sweet. Another reason why I decided to keep it was the title seasoning requirement for FHA loans. After I learned that I would have to pay for one of the two required appraisals, deal with a potential low appraisal since flips do not get the best value from appraisers, and have to submit receipts to proof rehab cost and improvement; I decided to just lease it for a year and skip all that hassle.

Here is my rehab cost breakdown:

                                                                                                

$3,500	Roof (Labor and Material)
$7,390	Materials ( Tile, Paint, Sinks, Faucets etc...)
$6,500	Labor (My contractor is the best)
$500	Kitchen cabinet Doors ( Replaced the doors only)
$2,700	Front/Back concrete pad
$1,300	Appliances (Stainless steel range, MW and range)
$3,470	Heat and Air ( New 13 seer Heat and Air system installed! Brand is Goodman)
$1,400	Wood floors (250sqft living room/ Handscrapped wood floors+ floor leveling)
$1,300	Carpet ( Three bedrooms)

Next project is already under contract and it’s a probate purchase. A rinse and repeat. But the purchase price is a little higher at 56K with a 15K Rehab cost. Comparable are selling for 98K. So a potential of 27K profit...only if i sell it :-)

Thanks BP community and Happy Investing.

[J. Martin]

@Amine E. ,

I'm with you on keeping for rental instead of flipping, although my intent has been that way. The way I see it.. 

Why have a feast for only one night (and share that feast with the tax collector, hard money lenders, realtors, etc), when you can have someone pack you a nice lunch every day, all for yourself? 

Thanks for posting the nice before/after rehab pics. I only posted one unit so far of 3 vacant units I'm rehabbing (bought just over a month ago) but the rest will be coming.. 

http://www.biggerpockets.com/forums/223/topics/132...

Your fix-up gave me nice ideas for the next one. But curious, how much of your own time is in this? And if you knew you were going to rent it, would you have improved the property as much as you did (beautifully might I add). I'm always trying to strike that balance of improvements to make sure every dollar I add to the property increases the ROI, rather than just making it look how I think would look good.. so curious how others approach it also.

Good work!