All Forum Posts by: Danny Day

hudhomestore.com

Danny

I'll factor 10% for selling cost from now on. I want to be as conservative on my numbers as possible. Even at 10% it still sounds like I should make a decent return.

I am submitting the offers shortly.

Danny

Thanks for the feedback. I knew going in the selling cost were quite low. Maybe I should budget 4-5% for those.

The prices I included do include new fixtures.

J Scott that is a good point on the age of #1. The roof looked good to me from my visual inspection.

#2 will take longer to sell.

Danny

My 1st rehab is complete and currently leased (cash flowing $650 per month, appraisal came in $12k over my estimated ARV, might sell next spring) and I am ready to start on deal #2.

BiggerPockets had a lot of great advice on my 1st flip. I made a lot of rookie mistakes, one of the greatest being that I wasted much idle time on the deal. I gave my general contractor too much slack and not enough incentive to finish the deal on time.

This time around I've got 2 deals I am submitting offers on. I will not be using a GC, I will not be buying via wholesaler, and I will not be spending any money out of pocket until its under contract.

Here are the details of my deals:

#1 - 3/2/2 - Built 1991, brick on 3 sides
ARV - $110,000 (verified by comps)
Purchase price - $61,500
Rehab est. $10,000
Time line for rehab: 2 weeks max
Rehab level: Minimal
Rehab description: Sheetrock repair, paint (interior only), carpet, new range hood, basic landscape, remove door inside
Total equity capture BEFORE SALE: $38,500
Less purchase cost: $3,517 (3.8% plus inspection fee & insurance)
Less holding cost: $4,500 ($1,500 PM fee, 3 months of holding)
Less selling cost: $3,300 (3% of ARV)
Total profit: $27,183

#2- 3/2/2 - Built 2006
ARV - $82,000 (verified by comps)
Purchase price - $42,650
Rehab est. $10,000
Time line for rehab - 2 weeks max
Rehab level: Minimal
Rehab description: Remove room addition for garage, add garage door opener / rails, install laminate wood floors living room, carpet 3 bedrooms, paint interior, basic landscape.
Total equity capture BEFORE SALE: $29,350
Less purchase cost: $2,800 (3.8% plus inspection fee & insurance)
Less holding cost: $4,500 ($1,500 PM fee, 3 months of holding)
Less selling cost: $2,460 (3% of ARV)
Total profit AFTER SALE: $19,590

I budgeted 3% for selling cost because I am a licensed agent. If they need a home warranty or closing cost assistance obviouslly those numbers will slightly adjust.

I am also paying a project manager to manage the rehabs of these deals. $1,000 per job, on site every day with status updates to me.

Your feedback / opinions are welcome as always...

Danny

Well said Joel

I didn't get anywhere near 30 listings in 30 days, but I did get 5. I was happy with that. 30 listings in 30 days is a hard task. Its easier for me to find buyers in this market.

Danny

Lately I've had a lot of leads come in through my blog. I did not know my blog was syndicated onto my local MLS, as well as other realtors websites. It gets great traffic daily, and I get at least 1 phone call a week from it.

My biggest leads come from my SOI though

Danny

Great idea, glad to see this is moving foward.

Josh - the 2 day conference, will this be on a week end or week day?

I'll be attending

Danny

Welcome Buck, glad to see more Houstonians here!

Thanks Raymond

Always be willing to learn, listen, and improve your self and your business.