First buy, flip, hold success!!! First deal ever success!!!

[James H.]

We just collected first month's rent this evening! We screened and declined several applicants (even returned a deposit to hold for one declined applicant - took a lot of self control)and finally settled on some tenants that gave us the warm fuzzies and passed the background/credit/rent history/work verification with flying colors!

Here is the breakdown of the deal. Tell me what you think!

Low income working class neighborhood. Not a war zone! Safe at night.

Purchase price + Closing costs = 13,000 cash

Cost to renovate + Appliances= 6000 financed at 12% interest with visa

New central HVAC = 4000 financed at 14% interest with signature LOC at 5 years

Annual insurance = $500

Annual taxes = $600

My time to rehab = every weekend for 2.5 months

Rent = $550/month

Deposit = $300

Leased within one day of completed rehab.First months rent and deposit in hand prior to letting keys.

ARV hard to pin down but conservatively = 35K-40K in current market.