This is not actually a house I have found. It is just my numbers worksheet so I know where I need to be when I do find a house. I can plug the numbers in to see if it will work.
I am working on my action plan to actually find and buy my first flipper but I just started to think I was being a little too hopeful on size of spread I could find. I was just wondering if spreads this large were even realistic to find… if buying for 146k with 15k repairs, selling for 250k would be the deal of the week, month, year, decade, century? I want to be realistic in my goals.
I would of course base the repairs on the actual house I found. Just to get my number worksheet going I am using my house as an example for repair costs. I’m doing that because the houses I am looking for will be in similar neighborhoods, similar houses, with similar amount of work. We totally redid our house including appliances for 10k. Since we did all the work ourselves, I upped it to 15k to allow for contractors to do most the work.
Common belief amongst my local real estate clubs, cashflow clubs, wholesalers, and myself is that the market here for “in town” homes will remain flat for 6-12 mos and then will get back to normal pre “gold rush” days of 03.
San Diego! You’re killing me. I’m dying to get back there. My RE career is what is going to make that happen for me. That’s a powerful motivator for me!
Thanks for the numbers on the house. I know how tight the SD market is and that’s encouraging that you got such a good spread. Congratulations! I want to plug your numbers into my worksheet to see how it would work out if I found the same deal. Could you tell me what sort of financing you used and the points/interest rate? Also, could you share what % you paid the realtor? I understand if you don’t want to divulge that but I sure would appreciate it.
I need the big spread on the deals (especially the first few) to leave room for screwups, miscalculations, oh my god I didn’t think of that!! factors. And, so I can finance the repairs and hopefully points so all i need to do is pay the monthly mortgage, utilities, and front the money for repairs (which would be reimbursed through draws from escrow)
Thank you both for your help!