Flip-Why Wont This Work?(Part II, Conclusion)

[Andy More]

I wanted to give everyone the rest of the story.....

This is a follow up post to the below post I started back in September 2010.

http://www.biggerpockets.com/forums/88/topics/55498-flip-why-wont-this-work-?page=1

I sold the duplex today and everything worked out better than anticipated!

Here are the details, some figures are estimated but very close.

175k sold price(all cash, no appraisal or inspection!)
-$785(purchase closing costs, paid cash)
-$0(sold without a realtor!)
-$564(my closing costs on sale)
-$20(repairs, burner on stove didnt work, fixed myself and had to buy a couple parts, unclogged two garbage disposals at no cost, fixed non working gas fireplace at no cost)
-$140(previous landlord paid culligan $40 per month for rented water softeners)
+$5,250(GROSS rental income for 3.5 months, no vacancy)
-$175(homeowner insurance for 3.5 months)
-$546 (real estate taxes for 3.5 months)
-$145,000(purchase price)
=$33,020 pretax profit!

22% return on 145k over 3.5 months. Annualized return 77%.

If I could earn 77% return on my cash every year I would quite my day job in a hearbeat. Heck, if I could get a 30% return on my cash every year I would quit.

I wanted to thank all the posters in my original post, there was lots of good advice that I belive helped me seal the deal!

On to the next one...