Hidden Iron House Flip Numbers Breakdown

Danny Johnson / 14 comments

Here are the final numbers for the Hidden Iron House Flip.

House Flip Timeline

Purchase Date:April 18, 2011
Listing Date:May 5, 2011
Contract Date:June 16,2011
Closing Date:July 18, 2011
Total Days From Purchase To Resell: 92 Days

We would have closed sooner had we not had the problem with the FHA 90 day flipping rule.

House Flip Numbers

Intial Costs and Assumptions
Purchase Price:$25,000
Settlement Fees:$1,400 (title policy, closing fee, insurance, loan fee)
Estimated Repairs:$8,000 (estimated 10k, but I think we can do it cheaper)
Estimated Resale Price:$70,000
Estimated Profit:$35,600 minus holding costs and selling costs

Actual Resale Price:$71,140
Actual Repairs:$8,157.44
  
Holding Costs
Mortgage Interest:$960.88
Property Taxes:$502.86
Property Insurance:$97.00
Total Holding Costs:$1,560.74
  
Closing Costs
Realtor Commissions:$3,912.70
Our Closing Costs:$357.95
Buyer Cost Assistance:$4,268.40
Title Policy & Survey:$951.35
Total Closing Costs:$9,490.40 (OUCH!)
  
Actual Profit:$25,531.42
Bonus: Click Here to Download My Top 5 Motivated Seller Marketing Methods Guide pdf that will show you, in awesome detail how to use 5 different marketing methods to generate great leads consistently.

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14 awesome responses to “Hidden Iron House Flip Numbers Breakdown”

  1. Gilberttribe on

    Thank you for your very insightful blog and website. You mention that you goal is to do 30 deals a year. Have you previously done 30 deals per year? Thus far, your average made in terms of profit is over $30k per house (counting the whole sale deal). Is that typical, or have you been more choosy lately? The reason I ask is that if you take 30 times your current profit per house, you get a large number. What are you assuming your holding period will be per house? If you achieve 30 houses per year, that will be a significant number of rehab crews you will managing at the same time.

    It is not my intent to pry into your finances, but I am trying to gauge the size of your business. At some point, you should have the cash to self finance your deals if you so chose.

  2. Stephen on

    Hello Danny, I have been following your blog since the beginning and congrats to all of your success so far. You definitely are where I want to be. I appreciate all of your knowledge and real-worldness that your bringing to this game and to newbies like me. You really break it down. So I have visited your website and it is pretty straightforward. Do you have a selling website as well? Im asking because I want to get all of my tools in order before I even attempt to contact buyers and sellers. The whole first impression thing is very important to me. Thanks for your time and my nose is finally out of the books, time to start bugging you guys….just a little

  3. Adam Clemmons on

    Danny,

    I assume from your replies that you tried your luck listing your houses FSBO and it wasn’t working?

    I know you can pay a $200-300 flat fee to put your house on the MLS as a FSBO as long as you agree to pay the buyers agent fees. This could cut total realtor fees to 2-3% + the $200-300 listing fee.

    Are there any reasons you don’t(still?) do this? Is your listing agent just so aggressive in selling the properties that you don’t think you could move them fast enough FSBO to make the savings work?

    Adam

  4. Kristine-CA on

    Hello. Just found your blog and am enjoying the details. Thanks for all the sharing. Your market is similar to mine in Central Valley CA in terms of selling prices. You’re working the lower and better houses with similar spreads. I don’t do rehabs, just flips. Now the flipping spreads are smaller and I’m considering doing the rehabs myself so I can get the $30-50 spreads I used to get just flipping. My speciality is title problems/probates and working with sellers with problems (tenants/squatters, legal issues, etc.). I have rehab buyers but am beginning to think that I should keep some to rehab.

    Regarding the 90-day FHA seasoning: my understanding of the seasoning regs is that you can’t go into contract for 90 days. It appears you are selling after 90 days but going into contract before that? How does that work?

    Thank you for keeping track and posting numbers about your leads. This is not easy to do. Or should I say not fun to do. I’ve been forcing myself to do it for the last 3 months. I’m a very intuitive marketer, and use mostly mail marketing. I send out very targeted marketing to different groups but then never know which letter the caller got. And I never kept track of how many offers I made versus closes. Real numbers are good stuff.

    I haven’t yet gotten through all the posts, but do you have any place where you are keeping track of mail volume. I see how many leads you are getting in calls, but no the total number of pieces.

    I’m looking forward to more reading here and am happy to share some of my mail marketing stuff. Sorry for the long comment but your buy houses website is first one that made me understand how far behind I am on that marketing tool. My husband designs websites and has been pushing me for years to have one but I always thought they were too…not me. I like being a one-woman show and working directly with sellers but I see now that the right website could let me keep that MO and provide good leads. Again, thanks for the site.

  5. Matt stoltzfus on

    Great information. I am just starting wholesaling. Can you give me two tips that are crucial in being a successful wholesaler. Thanks