House #42: Final Analysis

May 6, 2013 · 10 comments

We closed on the sale of The WI-2 House last week…

We originally anticipated a resale value of about $235K, but as we were working on the project, our agent kept revising that number upwards. Ultimately, we listed it for $264,900 and within 7 days, received an offer for $268,000. We made a nice profit on this one — it averages out the first Milwaukee project where my partner and I spent nearly $300,000 and nearly 8 months just to make a $7000 profit each (after all costs)… 🙂

Here is the breakdown of financials for this project:

WI-2 House Financials

10 responses to “House #42: Final Analysis”

  1. george says:

    wow. keep up the great work, j!

  2. r jenkins says:

    Extremely great
    This proves their money to be made in Wisconsin

  3. Kristine-CA says:

    Congrats to you and M. and C. and the team!. I’ve been waiting for the final numbers on this one. I know you and your team work really hard to make a good product and to create branding. But there is no replacement for a property in the right area at the right price….for the right buyer. Especially when there isn’t a ton of tastefully rehabbed inventory for retail buyers. WI-2 is essentially a 3/1, correct? A smallish, 3/1. With a basic, pre-habbed bath. With tiny, tiny windows in the bedrooms. With a strange “breezeway” challenge. And it rocked with the buyers. Again, kudos to you and your team for making that one fly off the shelf.

  4. J Scott says:

    Hey Kristine,

    Thanks! Yes, a 3/1 with another .5 bath in the basement. And very small bedrooms. The selling features were the neighborhood and the fact that the house was rehabbed (there’s not much rehabbed inventory in this area)…and I like to think that the kitchen and the breezeway transformation helped too… 🙂

  5. New Launch says:

    Wow. This is really a lot of money in just 7 days. Really well done.

  6. J Scott says:

    The 7 days was the amount of time it took to get the offer. We did a full rehab in the couple months prior to listing it for sale. The total hold time was 4.5 months.

  7. Harry M says:

    Congrats, J! That is a very large jump in profit between your first and second Milwaukee projects.

  8. KimG says:

    Hey there, I am interested in getting into real estate investments. I wanted to know if you have ever dealt with HUD or Fannie Mae Homepath Properties at all. Thanks! And keep up the Great work!

  9. J Scott says:

    Hi Kim,

    I’ve purchased quite a few HUD and Homepath properties, and as long as you have an agent who is knowledgeable about making offers and handling these transactions, they can be a great source of REO deals!

  10. KimG says:

    Hey there Scott,

    I have yet another question for you. What are your thoughts as to the best type of business entity to use for real estate flipping. I have heard that its best to use an LLC to decrease the liability…but because I am starting with very little capital… I was thinking I may have to start as a Sole-Proprietor…then eventually roll my investments into an LLC. I’m not really sure..but would again appreciate your feedback. Thx again.

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