First Renovation Project Under Contract!

[Patrick McPartlin]

Hello all,

So I've been a bit late to write this post as the house has technically been under contract for roughly 19 days. It's expected closing is fast approaching, this Friday (6/28/2013).

The acquisition process has been rough. All in all though, think we raked in a solid deal.

Please review my numbers and let me know how I did.

Purchase price: $92,900 (all cash)
Closing costs: $1,800 (inspection, survey, etc)
Renovation costs: $22,000
Holding costs: $1500 (utilities/taxes/insurance)
ARV: $160,000
Closing costs: $8000 (realtor commissions)
Net Profit: $33,800!

Also, the realtor is my mother and she has insisted that she is not keeping her share of commission. I told her she should, but she is quite stubborn I guess. That's another $4,100 between purchase and sale. I know, I know, that is not a part of the numbers technically but it is worth noting.

I am sure there will be hiccups along the way and I expect them but I am proud that I jumped in and didnt get stuck in "analysis paralysis." I as well note the disadvantages of all cash but for this particular situation it made sense.

Anyway, I am really excited about this deal and I know emotions should never be present in real estate investment but I can't seem to not be anxious to start.

I'd like to send out a huge thank you to you guys because this is a wonderful community full of really great knowledge. I've learned a lot from here and if it weren't for all of you I may not have even tried to get into real estate investment.