As I promised in my last post, here are the final numbers of our second fix and flip. Like I said in that post, this one took a little longer than expected. The rehab took longer due to waiting on the kitchen and countertops. We were also under contract to sell this one for a very long time, because of the buyer’s FHA financing. Working with the bureaucracy of FHA is very tough.
This flip was more profitable for us than the last one, although there are still some areas I think we can streamline.
Here are the numbers:
Purchase Price: $120,000
Purchase Closing: 1,021
Holding (4 months): 7,074
Total Project Cost: 168,744
Private Loan: 140,000
Our Investment: 28,744
Sales Price: 210,000
(Minus – Sale Closing Costs): (8,364)
(Minus – Project Cost): (168,744)
ROI = 114%
Annualized ROI = 886%
So in 4 months, we more than doubled our money. We were pretty pleased with these results.
In the future
For the next flip, we are really going to work on streamlining our rehab costs. We aren’t going to cut corners, but we are going to do some more shopping around for contractors and materials. Now that we have done a few remodels, we are getting better at knowing if we are getting a good deal or not.
We closed on our next project a week ago, so expect an update on that soon!