We purchased a flip earlier this year and we are going to be starting rehab on the project next week so I wanted to share before video and anticipated numbers for the project.
This is a 3 bed/1.75 bath house in Highland, IN and we purchased it for $82,000 directly from a lender. The bank was asking $130,000 but we were able to negotiate the price down to $82,000. It is a 1,650 sq ft tri-level house and overall in decent shape but needs some TLC to get the value out of it.
These are our projected numbers for the house:
|Kitchen and Bath Vanities||$2,500|
|Buyer Closing Cost Credit||-$3,500|
|Interest Cost (12%/yr)||-$7,394|
|Estimated Closing Date||30-Jun-18|
Even though we purchased the house back in January, we didn’t start working on it right away because there’s a good chance that we will have a FHA buyer and if we put the house on the market before 90 days from the day deed is recorded, it will cause issues. Plus we had few other projects going on, so it just made sense to wait on starting the project.One thing to note is that I am using 12% interest cost for the project. My actual interest cost isn’t 12% but I like to use 12% because it factors in any opportunity cost also.
Once we start, this should be a relatively quick turnaround and our goal is to get the house on the market by April 30 and then close by June 30.