It took almost 6 months to close on this house.  I finally closed on December 29th but the house is now on hold while my crew finishes up on the Bathroom Hole House.  We should start work in early February.

I have taken pictures of the house and completed the repair list.  Here is a breakdown of the repair list:

Replace Stolen AC Units $6,500.00
Plumbing   $1,000.00
Flooring-Carpet,Linoluem,Laminate  $4,000.00
Paint – Interior and Outside Trim  $2,500.00
Landscaping  $200.00
Drywall work  $300.00
General Repairs  $2,300.00
Total   $16,800.00

My purchase price was $33,250 and after all closing costs I paid a total of $35,003.53 (line 120 on the HUD-1).  If my repair estimate holds I will have spent $51,803.53.  The house has been appraised and the value is $80,000 after I make these repairs.  Here is a breakdown of the number I expect:

Purchase and Close $35,003.53
Repairs $16,800.00
Holding Costs $2,000.00
Total Spent $53,803.53
   
Sales Price $80,000.00
Total Received $75,200.00
   
Profit $21,396.47

 

This repair estimate was made when I intended the house to be a rental.  Now that I may flip it I may change some of the numbers.  I may need to upgrade the flooring and add nicer appliances.  This may reduce my profit some but I will decide on these items as I go.

I have posted a video walkthrough of the house at youTube.

Here are the pictures of the house before work begins.

  2 Responses to “EON house pictures and numbers”

  1. Don,

    How do you come up with buyers. Do you just put up the For Sale sign, or do you have some potential buyers in mind earlier in the process?

    • I have never actually sold a house. All of my properties in the past have been rentals – I have 13 now. The two I currently have in rehab phase will be the first I intend to flip. I am going to use a real estate agent for the sale.

      If you have a lot of time you can probably make a little more by selling it yourself. However, I do not really know how to get the word out about the house. I found an agent who is one of the top in the area and I see how this works out.

      I don’t want the hassle of showing properties and walking buyers through the process. I plan to make over $20k after paying the commissions. I think my time is better spent looking for another $20k deal instead of trying to save a $6k commission.

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