We closed on the sale of The Haggle House yesterday… (see all the financial results below)
This house was a great experiment. For about 6 months, it was our first real rental property, but once the initial tenant chose to leave (before the lease was up), we decided that we’d rather just sell this one and move on. It’s not that I don’t like the idea of rentals — it’s more that we just didn’t have a good plan in place for holding properties, and until we have a solid plan, I’d rather just keep reselling them like we’ve been doing.
Ultimately, the six months that we held the property allowed us to get the sale price up to market value — something that would have been very difficult from an appraisal and buyer-financing standpoint had we tried to do it immediately after we purchased and rehabbed it. So, ultimately, it was a good thing that we held it for a few months. We probably made an $15,000 doing this.
Here is the full final analysis for this one…
Here are the key timeline milestones:
- Purchase Offer Date: 8/12/2010
- Purchase Closing Date: 9/10/2010
- Rehab Completion Date: 9/17/2010
- Sale Listing Date: 5/20/2011 (Rented for 6 Months)
- First Sale Contract Date: 6/25/2011
- Final Sale Contract Date: 6/25/2011
- Sale Closing Date: 8/4/2011
Here is the breakdown of financials for this project:
Our profit on this one was a little over $31K, pretty much a homerun in my book, especially considering the low purchase price. Not to mention that this was one of the easiest rehabs we’ve ever done, and were still able to sell it for more than twice what we purchased it for.
We purchased this one for cash and did a refinance to pull much of our money out, so the ROI on this one is better than expected for a property we held for nearly a year — about 169%..
Here are just some of the final statistics that I’ve been tracking for all my projects, and that summarize the success/failure of each project pretty well:
- From Offer to Purchase Time: 29 Days
- Rehab Time: 10 Days
- Selling Days on Market: 26 Days
- Selling Close Time: 40 Days
- Total Hold Time (Close to Close): 328 Days
- Total Profit: $31,476.49
- Return on Investment (ROI): 168.57%
- Annualized ROI: 187.58%