1st flip (or 2nd really...) is a success!!

[Scot Howat]

So I purchased one house at the end of Feb and it's still not finished being rehabbed, but about 2 weeks after that I bought another house (house #2).  We finished it up and after a week on the market we accepted an offer at 97% of list price. 

It's a FHA buyer so it can't close until mid July but I will make a profit on it between 18-20k after all closing/realtor costs.

They say that a successful 2nd flip just means that you lost less money than on your 1st.  That's too true.  The 1st property that I've got (almost done) will probably end up breaking even, or possibly losing up to 15k.  But if you wash the two of them together it's still going to be a net profit, and now I know what I'm doing.

Here's the numbers...

Purchased 77k

Rehab 22k

Contract price 134,750 (138,250 sales price - 3,500 closing credit)

Closing costs/fees 13,500 (~10%)

Profit ~22,500 (minus utilities and taxes etc)

What do you think????  Feedback please!!!

[John Aranton]

Congrats Scot on taking the steps and moving into 2nd flip too. Hopefully I'll be following behind as I still work on getting my team and networking.  Keep up the good work and continue to share and motivate.