NEW DEAL - GROUND ZERO - Follow Along!

[Brennen Cook]

Hello BP!

Another deal here and I would like to yet again share my experiences as other do. Lets get right into it. See Attached images for spreadsheet breakdown.

6608 Benham Way, Sacramento, CA

Currently a 3 Bed 2 Bath 2163 Square Feet

The garage has been converted to livable space by the previous owners. The idea is to build a 2 car detached garage and rearrange the floor plan to create a more functional home. I believe after review of the comps, I can put a much BETTER product on the market.

Comps

$590,000 or $275.6/SqFt - 6380 Surfside Way 3/2 2141/SqFt

$430,000 or $260.4/SqFt - 661 Benham Way 3/2 1701/SqFt

5 Month Project Duration - 2.5 Month Rehab / 2.5 Month Sale

ARV = $595,000 or $275/SqFt@  4/2 2163 SqFt

Rehab = $180,000

Fixed Cost (Sales Com, Sales Closing cost, NON cash outlay)

$39,885

Cash Outlay ( Buying Closing Cost, Monthly Loan payments,Utilities, Etc)

$20,962

Purchase Price = $261,000

595000 - 180000 - 60847 - 261000 =

Profit =$93153

Note**** that there are TWO loans in place here. The loan with a security interest in the house is 1st position is for the $261,000 purchase price with 2 points up front , 11% interest with interest only monthly payments, remainder due on sale. The loan in 2nd position on the house is for the full rehab of $180,000, 11%, No points, due on sale.

Actual Cash out of pocket

$20,962

Cash on cash return

20,962 / 93153 = 444%

Annualized return = 1066%

This is my breakdown. I am putting this out in hopes to 1) Help anyone else out there who is trying to grasp these ideas as I was before, and 2) Open myself up to constructive criticism from the wealth of more experienced flipped out there that are on BP.

I will try to be very prompt with answer questions, comments, advice or recommendations. With that said, GIVE ME YOUR OPINION!

See Link below for BEFORE picture.

6608 Benham BEFORE

Existing Floor Plan

NEW Floorplan