All Forum Posts by: Tim G.

So this seems like a very noob question but I am having a serious brain fart here.  Almost embarrassed to ask this!

I just sold my second flip and i'm trying to calculate the exact profit amount.  I've crunched the numbers several different ways (including the BP flip calculator) and always get a different number.  They are all within about $2000 which is a pretty big swing I think.

I have 2 HUD's (buy and sell), rehab costs and holding costs. Is there anything else I need to factor in?

I think my confusion is in the taxes and closing costs in the HUD's. Some of the rehab cost was also buried in the loan and some was paid by me.

I'd be happy to share the HUD's and numbers with someone who can help me!

@Alfonso Velazquez we replaced the cabinets.  www.rtacabinetstore.com

@Darrin Carey I used Union Savings bank on the 2 properties I've flipped so far. 20% DP, 2.99% 1 year ARM. Escrow the rehab costs until completed. But I have good credit and a good paying day job....so might be a factor.

I also recently met with Spring Valley Bank. Terms aren't as good but as a portfolio lender, they look at the deal more than your credit.  15% DP, 7.99% 18 month interest only loan. Escrow the rehab costs until completed. 

Ken, I would start out by reading a couple books on flipping houses.

http://www.biggerpockets.com/flippingbook

Welcome Ken!  Another Cincy native as well.  Just finished up my 2nd flip. 

for the money to reglaze people have said above, I'd just replace it. 

We've installed 2 of these tubs and have been very happy with the end result.  The last 1 we put in had A LOT of dried thinset, grout, paint, etc in it (damn contractors) and it cleaned up perfectly.  Looked brand new.  I was pissed because I thought for sure it was going to be all scratched up.

http://t.homedepot.com/p/Bootz-Industries-BootzCast-5-ft-Right-Drain-Soaking-Tub-in-White-011-7000-00/100389019/

Here's another one.

Before.....

Here's a nice before and after collage.

Here's the last house I just finished.

Before.......

After.......

1. Finding properties that have enough meat on the bone to make a profit.  (solution - networking with others in real estate investing)

2. Accurately estimating rehab costs so you don't end up breaking even or worse, losing money. (solution - read J. Scott's book on estimating rehab costs)

3. Finding contractors that work for reasonable money, don't do a hack job and finish in a timely manner. (solution - networking with other investors to find contractors they use and are happy with)

Just a quick update.  We listed the house on Friday 3/6/15 at $189,900.  In the first 3 days, we had 8 buyers walk through.  Received an offer on day 4 for $185k + 2500 CC's.  We countered at $187,500 + 2500 CC's and they accepted.  This is contingent on them selling their house.

The buyers are closing on their house 3/26 and are scheduled to close on my house on 3/31.  This seems very quick to me.  But my realtor spoke with the lenders for both transactions and sounds like there won't be any hiccups on either close date.  So that should save me ~$1800 in holding costs over what I had originally estimated.  

Total profit should be right around $24,000.  Time to find the next one!