In this video I show you a fix and flip property that I am currently working on. The video starts with me standing in front of the exterior of the house which has brand new stucco. Prior to this, the house had wood frame and by adding stucco which costs around $5,000 it makes the house look much newer and fresher. This is a great trick for taking an old wood frame house from the 70's and making it look like a much newer houses. In this video the stucco has been completed but the exterior of the house has not yet been painted.

On the interior of the house I show you the kitchen after the cabinets have been stripped out and before the new cabinets have been installed. I show you the type of laminate flooring that we use for the bedrooms and also the type of tile that we use for the common areas. On a typical house like this which is a 3 bedroom 2 bathroom, 1,200 square foot house the interior rehab will be around $20,000 (including appliances). Adding $5,000 for the Stucco the total rehab on this house is around $25,000 which includes brand new stainless steel appliances.

This house was purchased from a motivated seller from a yellow letter that I mailed to a list of absentee owners. I purchased this house for $72,500 from the homeowner. When this house was complete, I listed it on the MLS and sold it for $129,900. My profit on this deal was around $22,000 net after commissions which is about average for a deal of this size. Now another exit strategy could have been to turn this into a rental property. Rental properties are in very strong demand and there are many investors looking for florida rental properties and no shortage of tenants. A fully remodeled house like this would demand a premium rent of around $1,500 per month so considering that the house cost me $72,500 plus $25,000 in repairs my all in cost was $97,500 and the house was worth $129,900. A better strategy may have been to keep it as a rental since it would cash flow very nicely and my purchase price to rent multiple would be only 65 times rent which is a great deal and very positive cash flow if you put a mortgage on that.

Remember that if you want to fix and flip houses, the key is to tap into the leverage of borrowed money. By borrowing money from private lenders, you are able to leverage your returns. For example on this house my purchase price was $72,500 but I borrowed $90,000. So I had not only the purchase price covered but also a substantial portion of the repairs covered as well. That means that when I had to pay the contractor to start the repairs and continue repairs all the way through the job I was using the borrowed money from the private lender. I only needed to dip into my own pocket to pay the contractor the final payment. But by then the property was already listed on the MLS and I knew it would sell in a few days.

When you first start out, no one will fund your repairs unless they are a family member, friend or are partnering with you on the deal. When you first get started fixing and flipping you will probably need to get a hard money loan and put down at least $10,000 to $20,000. You will also need the repair money (in this case $25,000)

If you would like to calculate profit potentials on fix and flips you can use our Rehab Property Calculator at [ Ссылка ]

This Rehab Property Calculator is also available for free in the app store for both iTunes and Android (just type in "rehab property calculator"

If you want to learn how to fix and flip houses like this I have a fix and flip training webinar at this link which was mentioned in the video: [ Ссылка ]


If you are brand new to real estate and want to learn more about wholesaling real estate and how to wholesale real estate and flip houses then please register for the free wholesaling real estate training at this link below:

[ Ссылка ]


PLEASE SHARE AND LIKE THIS VIDEO

DON'T FORGET TO SUBSCRIBE TO MY YOU TUBE CHANNEL

[ Ссылка ]

CONNECT WITH ME ONLINE:

WEBSITE: [ Ссылка ]
FACEBOOK [ Ссылка ]
TWITTER [ Ссылка ]
INSTAGRAM [ Ссылка ]
LINKED IN [ Ссылка ]
PINTEREST [ Ссылка ]
GOOGLE PLUS [ Ссылка ]

LISTEN TO MY PODCAST ON ITUNES:
[ Ссылка ]

DOWNLOAD A FREE COPY OF MY BOOK ON WHOLESALING
For more real estate tips about property investment, investing in real estate, and how to start wholesaling, download a FREE copy of my best selling book "Wholesaling Bank Owned Properties" at [ Ссылка ]

свернуть