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Is the juice worth the squeeze?
About 5 months ago, we started a remodel on a rental property that we originally purchased for $41,900.... We held the property for about 3 years, collecting $750/month in rent before the tenant moved out. Once it was vacant, we decided to renovate and reposition the property for sale. This is what the numbers looked like! • Purchase Price: $41,900 • Total Additional Investment (holding costs + remodel): ~$73,100 • Total Basis: ~$115,000 • Contract Sales Price: $170,000 • Estimated Net After Closing Costs: ~$158,000 • Estimated Profit: ~$43,000 Now, a $43,000 profit on a small project is nothing to complain about. In fact, our cash-on-cash return was roughly 54%, which is a fantastic return for a 5-month renovation project. But here's the interesting part... If we had simply sold the property as-is when the tenant moved out, we likely still would have made around $30,000. So the real question becomes: Was it worth putting an additional $70,000+ into the deal, managing a renovation for months, and taking on the extra risk to make an additional ~$13,000? There isn't always a right answer. Sometimes the best deal isn't maximizing profit—it's maximizing time, reducing risk, and increasing velocity of capital. That said, this project taught us a tremendous amount. Every renovation sharpens our systems, improves our contractor relationships, and makes us better investors. The education alone may have been worth more than the additional profit. There's also something rewarding about taking a neglected property and improving it for the next owner while making the neighborhood a little better in the process. What would you have done?
Update On 1st Renovation- 74k Profit!
As I should have posted a long time go, we finished out first large remodel and sold the property in January of this year for full asking price! 212 S Elm was amazing learning project and allowed us to have the confidence to dive into a bigger project. Here were the final numbers on the deal. Purchase price: 41,800 Remodel: 41,500 Holding Cost: 1,650 Total Input Cost: 84,950 Sales Price: $170,000 Selling Cost: (11,050) NET Profit: $74,000 Tax Tip: We paid 0% in taxes on the profits from this sale because they are LTCG and in the 0% bracket based on our tax returns. Feel free to ask any questions!!
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Update On 1st Renovation- 74k Profit!
We bought 2 properties and got PAID to do it!
My partner and I sold one of our long term rentals which we owned for 2 years. It rented for 1,500/month in a college town with the details below: Purchase price: 85,000 (6k down) Rehab: 4,500 (cash) Sales Price: 125,000 Sales Cost: (2,596) NET Profit: $32,900 Profit & Equity: $45,700(what we recieved) Upon closing, the same day, we bought these two properties for a total combined purchase price of 164,000, we used the funds from the sale of our original property as the down payment for these two and had over 7k left over that was deposited in our bank account! These properties combined rent for 2,200/ month. Genius idea: When you purchase two properties from the same seller, put them under one loan. So when you sell one of the properties, you don’t have to pay the loan off because it’s still secured by the other property! Pretty neat we traded 1 house that rented for 1,500/month for 2 houses that rent for a total 2,200/ month and GOT PAID +7k to do it.
We bought 2 properties and got PAID to do it!
We made 42k profit on our flip!
Last December, we bought 506 maple st. through direct mail marketing for 22,000. We remodeled the house completely for an additional 122,000, which we completed using our own cash. We turned it into a 3 bed 1 bath. We put it on the market and it went pending in just 3 days. Purchase price: 22,000 Rehab: 122,000 Holding cost: 0.00 Total Cost. 144,000 Sale price: 200,000 Selling cost (13,500) NET Profit: $42,500 Tax Benefit: We made sure to hold this property for a minimum of 1 year so it would be treated as LTCG, which means most of the profit will be taxed at 0% and a little at 15% for federal, and 0% for state. We are currently looking for a 1031 exchange property so we can defer all taxes! Reach out to learn more about the tax strategy, or ask us what things cost to complete a remodel!
We made 42k profit on our flip!
🎉 Big News! We Closed on Another Property! 🏡✨
506 Maple St. Lathrop MO. We have big plans for this property, as we’ll be following the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat). Our goal is to transform this house into a rent ready home that will be fully renovated by August 2025. 🛠️ Real estate isn’t just about properties...it’s allows you to build a vision & create value. We’re incredibly grateful for the opportunity to keep growing in this journey. Stay tuned for updates along the way! We can’t wait to show you the transformation of this property from start to finish. If you’ve ever considered investing in real estate or want to know more about how we do it, feel free to reach out
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