Monday, February 1, 2016

How To Flip A Property: Our Property

In case you missed the first 3 articles on how to flip a property.

Search Objectives

  • Purchase price at or below $150,000
  • At least 2 bedrooms
  • 2 bathrooms minimum
  • Minimum of 1,000 sq. ft. under air
  • Condo-Villa-Townhome (our budget did not allow single family homes as an option)
  • Lake Nona area of Orlando
  • Low HOA
  • Must have upward pricing potential to flip
  • The Cap. Rate must be 10% or above to hold
  • $10,000 set aside for repairs, improvements and upgrades

Property purchased

  • $129,900
  • 1,300+ under air
  • 2 bedrooms
  • 2 baths
  • Villa
  • 1 car garage
  • Lake Nona area
  • Sales price will be upper $160's after upgrades
  • 11.45% Cap. Rate if we decide to hold instead of flip
  • Rents will average $1,375 to $1,425 after upgrades
  • REO (bank owned)
  • Costs of upgrade $6,500

You can see the property is not in horrible condition for being bank owned.  We began filling holes in the walls and prepping for the project.  Everything works, including the stainless appliances (excluding the broken handle on microwave) washer/dryer, HVAC system and garage door opener.

If you have questions about this project, you can reach me by email, text or cell anytime.

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