House #1: SOLD! Financial Recap

The Batcave is finally sold!  I just returned from the closing this morning.  The buyer, her agent and banker all loved the house.  If you’ve read the story of this house, you might understand how much of a financial and emotional burden has been lifted from my shoulders.  This was a great learning experience, but the circumstances surrounding this long, drawn out project have revealed a new cause that I want to support in my life.  I’ll post further details of that in This Post.

Here is the financial recap of the deal:As you can see, the additional holding costs really hurt.  Here is what the holding costs would have looked like if I could have sold the house by July 1st 2011, as originally planned :

Also, I did most of the interior work myself, so part of my materials expense was for tools and supplies that I will be able to use in future projects.  If I didn’t have to purchase these things, my rehab cost would have been lower.

Without the extra holding costs of $6,214.14, my profit would have been $19,716.51.  This would not have been a home run, but it would have been a solid double into the corner.  But as it stands, I’m standing on first with a leadoff single.  And I’m happy with that, because any profit is better than a loss. 

 So now that this one is wrapped up, I’m chomping at the bit to find another deal to start on.  Thanks to everyone who played a part in making this happen, and thanks to all of you here on the blog for following along and keeping me motivated.


Comments

House #1: SOLD! Financial Recap — 4 Comments

  1. Great job! Saw you mention this on BP so I came over to check it out. Like you said, any profit is better than a loss. Keep it up.

    • Thanks, Nick. I’m not sure if you remember, but in the shuttle on the way to the hotel from the airport in Denver, we were all chatting and you made the comment “I want to buy something” (while we’re in Denver). I remember thinking to myself, “I’m going to work hard to get myself in a position to be able to say ‘me too!'” the next time we meet. So thanks for the motivation. I look forward to meeting you again when you’re not under the weather!

  2. Andy,

    I am fairly new to RE Investing and was looking over your financials above and had a couple of questions.

    1. How did you finance the purchase? I do not see a down payment, but you show mortgage costs of $7279.

    2. Do you factor in interest amount lost if you financed or had a hard loan?

    3. I ask to compare with my first property. I am holding it as a rental but was trying to estimate my ROI if I had flipped it as you did above. My purchase price was similar to yours at $54,000

    Thanks and great job!
    Ronny

    • Hi Ronny,
      I’m sorry I missed your comment until now, I’ve been crazy busy and just now getting caught up on things.

      I financed this one on a conventional 30 year mortgage, so those costs are interest, taxes and insurance on those mortgage payments. The amount is large because I held this house much longer than I had intended to.

      Interest on a mortgage or on hard money would be accounted for in the financials just the same.

      Thanks for the question and best of luck to you in your investing.
      Andy

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