My latest case study:A shifting market is the best place to make money

I love identifying markets that are in flux.  In such a market you can pull from market rate clients that enjoy the discount the neighborhood has to offer in the lower listing prices.  And, as an investor there is plenty of inventory of distressed properties in need of full rehab as well as solid houses just in need of some cosmetic work.  On my last flip:

HML Loan length:  178 days

at 12% annual ($18.08 / day) on 55k principal

@178 days = $3,218

upfront points (2%) = 1100

total points + interest = $4,318

FHA buyer could not close due to banking regulations, so I leased it with prepossession while I waited:  2800 gross rent

acquisition + rehab  = 65,000

sale price = 86,500

sale price minus outside broker = 83,905

plus rent = 86705 gross revenue

minus 65,000 = 21,705

Minus 12% interest and 2 Points = 17,387 gross profit