Breaking Down Flip Margins

Key Takeaways

Now we can look at it if we flip this property. So I've already ran flip comps on this and I'll just plug these in real quick for you guys. So our purchase stays the same, our closing costs stay the same, our rehab cost is going to bump up to 55,000. Our rehab timeline is going to bump up to 90 days. Days on market are going to be about 40. Desired profit, we're going to leave that in there. Oh, I still had 10% interest in here. So this allows us to change our interest rate, how many points we're paying. Those were already factored on my purchase and so leaving the points and the additional fees blank. And then we also have our holding costs in here. So insurance, utilities, taxes as well. The ARV if we flip this is about 245 is what I ran. I pay 3% commission. I put a buffer in here of 1% for a TRR which is buyer's inspections once they request stuff to be fixed. And then some sell side closing costs with title fees. And then we have our contingencies here. So if we flip this, these are the numbers we're looking at. 32,000 base case. That's pretty good. Best case is 50 and our worst case is 12.