Century Home: Sold!

After about 145 days on the market, our Century Home flip is officially sold! We couldn’t be happier that the home went to a younger gentleman that is moving to Cleveland from the East Coast.

One of the question we kept getting via email was “Did you make any money?”

We did – a little bit.  The trouble with the Century Home was that it’s big and, while it is in a good suburb, it’s on the periphery of the more desirable areas.

As a rule, my partners and I target flips with a net return of 30%.  If it’s less than that, we don’t want to take the risk.  This one came in well below that, but thankfully we still managed to turn a little profit.

The chart below shows a general split of how it all worked out.  Rehab costs ate up 57% of total proceeds, with the purchase price taking up another 28%.  Those are our “Hard Costs.”  Rehabbers generally have a good sense of how to estimate those.  What many newbie flippers forget, however, is that there are soft costs, as well – interest, commissions on the sale, insurance, taxes, lawn maintenance, snow removal, utilities, etc.

Are we happy with 5%? No, not at all – but, you win some and you lose some.  It’s a numbers game.

The goods news is, we’re back at it – we’ve got two properties under contract and we can’t wait to tell you about them!
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