We closed on the sale of House #50 today…
This project was another Milwaukee house that needed a good cosmetic overhaul, along with some reconfiguration. We blew open the kitchen to the dining room and the living room, and took the huge master bedroom and created a master suite (added a full bath and a walk-in closet). Had we gotten this one on the market a month or two sooner, we likely would have earned an extra $10K in profit, but we’ve had a lot of projects going up there, and they all fell behind schedule.
We used a lender on this deal — we agreed to give him 50% of the profits or 12% annualized interest, whichever was greater. In the end, 50% of the profits would have resulted in about 10% return on his investment, so he got the 12% interest instead. Our profit here wasn’t great, but it made money, so I’m not complaining. Ultimately, I only had $60,000 or so invested (the other $200,000 came from our lender), so our ROI was actually pretty decent on this deal.
Here is how the financials break down: