My very first $100,000+ net profit flip

[Peter Hanson]

I don't post that much on here but I am trying to post more and interact more so here goes.  I'd like to share my most recent completed flip deal.  The home was a 1927 Spanish style home in Los Angeles, CA. It had good bones but it needed to be redesigned and completely remodeled inside and out. 

I have been listening to the podcast almost every day for the last few months and it's a great source of information and motivation so I wanted to share my most recent success in hopes I can meet people who can help me grow my business.

My name is Peter Hanson and I am a self employed Real Estate Appraiser and Real Estate Broker in Huntington Beach, CA  I watched investors make a lot of money for many many years so I finally saved enough money to start flipping homes. I did my first flip in 2012 in Fontana, CA. I paid $85,000, spent $14,000 on rehab and sold it for $135,000. I was immediately hooked on flipping. 

I found my most recent flip in Los Angeles, CA in a trendy, gentrifying area and thought I had a chance to make some good money. I bought it on 12/22/2017 for $510,000.  It was fixed and just closed on 6/14/18 for $759,000.

Breakdown/Deal Numbers:

Acquisition Costs (AC): $525,000

- Purchase Price: $510,000

- Closing Costs: $15,000 (hard money points and fees based on $408,000 loan amount)

Rehab Costs (RC): $80,000

Monthly Mortgage costs: ($2890 per month for 6 months = $17,340)

- Utilities: $600

Selling Costs:  2.5% (as a Broker I listed the home myself and saved the other 2.5%)

 Sales Price (SP)  $759,000 closed 6/14/18

- Commissions to Selling Agent: $18,975

-Selling costs (property taxes, title, escrow, etc) $8,000

Total Net Profit: $109,085 – Taxes & Any Additional Selling Costs

- $759,000(SP) - $26,975(SC) - $17,940(HC) - $80,000(RC) - $525,000(AC) = $109,085

Before:

After:

Thank you for reading. I would love to hear your thoughts and feedback. What could I have done different or better?