Flipped a condo for 89.3% annualized ROI

[Nadine Lajoie]

Hello,

I finalized my numbers on the condo with the final HUD statement last week, and I made 25k profits on a light fix and flip condo in Long Beach... I'm pretty stoked about that, was my first flip in high expensive California, compared to the 14 other deals I made Out-Of-States in Indiana, Illinois and Georgia, for less than $35k-40k each including fixing. California is pretty scary because the market is high and you have to invest 4-5 times more for not even twice more rents.... so here are the numbers:

PP: $162,500

Closing costs: $2,500

Repairs: $3,000 (I never had time to do all the $9625 repairs at the maximum I had planned)

TOTAL: $168,000

Resale in 2 months: $200k (March 18 - May 19)

Final HUD after all closing costs: $193,110

PROFITS: $25k / $168k investment = 14.88% ROI in 2 months

X 6 = 89.3% annualized (pretty amazingly surprised - I had planned 4 months for this kind of deal, so worked out even better than expected!!!)

SO now my goal is to do one every 2 months or my goal is to find partners so I can do 2 or 3 at the same time, with that price rance of about $165-$175k with repairs...

since I didn't have enough money to buy CASH a house like all investors want in California, but not a lot has enough money, I analyzed the market since last November, and found out that the Condos 1br/1ba, if I have to do buy and hold on it, or resell under the market as I did on this one, for a Buy & Hold investor, that is possible to cash flow and having a cap rate between 7% and 9%... I know most investors want to stay away from condos, me too at the beginning, but it worked out really well, so I want to do more of those, until the next crash, where the prices will be more affordable... I still do some deal Out-of-State with my students, because we can buy stuff at 12k, with ARV of 40-50k.... pretty amazing returns there! Just different kind of problems, but since I did a bunch of those, that condo in California was one of my most scariest deal!!! got out of my comfort zone, overcame my fear and happy about it... applied what I teach!!! :-)

Contact me if you have any questions or comments are welcome!  thanks

pictures didn't want to attach - don't know why.

so go there and you will see before and after pictures in the albums for 819 E. 4th Street #4

www.Facebook.com/nadinelajoie.realestateinvestor