Strategic Real Estate Investing Radio: HUD Flipping Case Study: Purchase and Rehab Flip in Action

Find out how Josh flips a bank owned property in the latest episode of the Real Estate Investing Made Easy Podcast. 

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Here are the details on this property:  

INITIAL EVALUATION REO      FROM MLS After      repaired value   (A.K.A. List      Price)             $144,900 Sell      price                       (90%      of List)                       $130,000 Net      proceeds                (90% of      Sell Price)             $117,000 Profit                                                                                     -$40,000 Repairs                                                                                 -$28,000 Max      Offer Price                                                               $49,000 Initial      Offer Price          (25% of      Max)                    $36,750 None      of our own cash or credit and without doing any of the work. ACTUAL INVESTMENT AND RESULT REO      FROM MLS Purchase      Price                                                                $56,904 Cash      to Close                                                                 $56,011.92 Improvements                                                                     $26,000 Total      Investment                                                           $82,011.92 Private      Money Funding from IRA                               $87,000 Cash      In Pocket up front                                                $4,000 Projected      Sell Price                                                       $144,900 List      Date                                                                          7.1.13 Gross      Profit Potential                                                   $62,900 Goal                                                                                 $40,000 Actual      Sell price                                                             $132,000 Sold      Date                                                                         8.16.13 (46 Days on Market) Net      Proceeds after closing costs                                 $119,200 Adjusted      Gross Profit                                                   $37,188.08                          ($119,200 – $82,011.92) Private      Lender Interest @ 12% over 7 months        $5,810 Net Profit after all expenses                                            $31,378.08 None of our own cash or credit and without doing any of the work.

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