We closed on the sale of House #49 today…
This was another Milwaukee deal. This was a major cosmetic overhaul, along with with major reconfiguration of spaces. We opened up the kitchen/dining room/living room and then stole part of the main bathroom to create a master bath and master closet (a nice master suite). We had some issues with our painter/sheetrock guy, and the overall finish of the house suffered for it. Because of that, the sale price was a good $10,000 below what we expected. Combined with the fact that the buyer was a good negotiator, we didn’t do nearly as well on this deal as we could/should have.
We purchased the property for $218K, put about $62K into the rehab and then sold it for $325K. We ultimately profited about $18,000 on the deal…we should have been closer to $30,000 had we not had the finish issues.
Here is how the financials break down:
This accounting doesn’t take into account any travel costs (the property is out of state), but given that we’re working on a dozen projects in Milwaukee right now, it’s difficult to allocate travel to specific properties. Instead it will get amortized over all projects and deducted as an expense (which is the correct way to do the accounting as well).