I did it! Flipped for ~50% ROI

[Dante Pirouz]

First of all thank you to the BP community and @Joshua Dorkin and @Brandon Turner for all that they've done for someone who was a total newbie 3 years ago!

I'm a "buy and hold" buyer with 4 rental properties in the Thumb (google that if you don't know where that is!) in beautiful Michigan! I bought a property intending to rent it out but the zoning had changed in Port Huron, MI and didn't allow it. My husband chided me for making that mistake (Darn it!!) but the wisdom on BP allowed me to figure out I could flip it and use the $$ to buy other things and that's what I did. After about 60 days on the market and we sold it for $65K after buying it for $30K from HUD with about $7K reno budget. We closed last week in a quick close and the cash feels so good in the bank account. I still can't believe it could be done but it sure can with the help of BP!

Now in addition to buying a rental in the right part of town (no duh!), as a reward I get to buy a cute "tiny house" on 3 acres by Lake Huron for $5K down on a nice land contract (so much better than buying an expensive purse or something)... I couldn't be happier!!

And now my husband has to eat his humble pie re: RE investing (plus a nice steak dinner on me) ;)

Before and after pics below!

BEFORE

(That's my tireless and patient RE Agent Paul Steward in the pic who puts up with my investing trials and tribulations)

AFTER

[Rick Maningas]

First off, congratulations. That is wonderful news. 

I wish Milwaukee had a zoning board to limit or monitor rentals. I deal with buy, rehab and sell owner occupant properties and there is nothing worse than seeing a neighborhood going down the tubes because of rentals. 

When talking ROI I like to talk about gross ROI and annualised ROI. Gross ROI is just taking the net profit divided by your total investment. $25,000 net profit divided by $100,000 investment equals a gross ROI of 25%. This ROI does not take into account how long it took to earn your profit. If it took you six months, in theory you could then do two deals a year so your annualised ROI is now 50%, or $50,000 profit divided by the same $100,000 investment. If it took two years to make $25,000, your annualised ROI is reduced to 12.5%. Just a few extra thoughts based on some of the additional comments.