I wanted to share a property we just sold yesterday and give a breakdown from start to finish of how the deal went, with hopes that newer house flippers out there can learn from our experience. Also on this post, I decided to make the pictures bigger since many people asked for larger photos from last time.

Deal Details:

This house was purchased by us very early February this year in a suburb South East of Seattle WA known as Auburn. We bought it OFF MARKET, probate situation. Owner past away a year prior, had no kids, and house sat there whole time while attorneys tried to figure out what to do with it. A wholesaler picked it up via meeting the attorney and they assigned it to me.

The house had just about everything left in it, kind of sad that no one wanted it or reached out about the older ladies death...

We closed Cash, no need to negotiate, numbers were solid from our stand point. Calculated $45k rehab, purchase $117k, Resale $215k, good deal. However we had some surprises, as usual, along the way.

Property specs prior: 3 Bed, 1 bath, 1200 Square feet with an illegal abortion of an addition for another 300 sqft. House built 1975. 1 car garage

Property After Rehab: 3bed/1 bath (turned into jack/jill bath), 1200 sqft, REMOVED addition and turned section into a large entertainment outdoor deck.

The Bad: Budgeted 45k for rehab, ended up 53k. SOOOO MUCH stuff in the house, dump fees were insane and more than thought. After we bought the house, we completely overlooked that the house had NO HVAC OR ELECTRIC HEAT AT ALL, only had a propane heater in the living room. Had to install all new cadet heaters throughout house (for those not from seattle area, AC is not something common here). Electrician miscommunicated with GC on where lighting was supposed to be, had to re-do at end of project when caught.

The Good: House sold in 6 days. Neighbors were great, close knit neighborhood. We bought thinking to sell for 215k, market was hot and rehab great, sold for 237k.

The Numbers:

Purchase: $117,000 ($12k assignment fee included) CASH PURCHASE

Rehab: $53,000 (budgeted $45k)

Holding costs: Roughly $1500

3% concession to buyer: $7110

Closing/Realtor/Excise tax 1.78% WA/Misc: $28,500

Sold: $237,000

Net Profit: $35,283

CASH ON CASH ROI: 20.4%

I tend to buy conservatively, we build in margins of errors into our analysis incase things go wrong, this way, if something does happen, we still make money. In this business you have to take risks for sure, however you can be smart about them. An investment isn't what is risky, its the investor investing in it that makes it risky.

Sold! Didn't Get Rich, But $35,000 is still nice!

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