Success Stories
Laura's Success Story
By
May 3, 2005, 11:54

I just completed and sold my fifth rehab in January 2005. I spent just under 6 months from start to finish. I netted my largest profit yet. Here are the details:



Purchase price: $62,000
Repairs: $33,800
Sell Price: $186,000
Net Profit: $70,000

I bought the 3-family from an individual who was in foreclosure and who had received one of my letters. I was able to close quickly (within 10 days) - all cash and no contingencies. The seller liked the fact that my offer was clean and that I could act fast. I bought and rehabbed the property with very little money out of my pocket. My private lender funded both the purchase price and repairs.

Repairs included vinyl siding, replacement windows, structural reinforcement, professional removal of asbestos and an in-ground oil tank (this I paid for prior to buying the property to confirm that no major oil contamination had occurred), all new decking and interior improvements including new flooring, carpeting, minor plumbing, some sheet rocking, lots of painting and other minor cosmetic work. We contracted out the labor-intensive jobs and took care of the cosmetics.

My next purchase will be another 3-family scheduled to close at the end of February, and then possibly a 5-family towards the end of April. The seller of the 3-family responded to my classified ad; the seller of the 5-family replied to a mailing. The numbers for the 3-family are:

Contract price: $175,000
Repairs: Not a rehab, just minor cosmetics totaling less than $4,000
ARV: $240,000-250,000
Monthly net cash flow: $750.00
Purchasing via traditional bank loan ?80%LTV, remainder coming from a line of credit against another property.

I plan on holding this and either refinancing in one year or placing a line of credit against it to help fund other investment opportunities. I’m working out the numbers for the 5-family right now.

Real estate investing certainly has its ups and downs, and is in no way an easy, get-rich-quick profession. But, I’ve remained persistent and committed, and am reaping the rewards of my hard work.

I again thank you and the loyal following at flippinghomes.com for your continued support and confidence. Your newsgroup offers a wealth of information to all levels of investors.

Sincerely,
Laura

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