Posted by dell-ohio on August 25, 2003 at 22:15:24:
Desired profit is 20,000 after all expenses. If there is minimal work and the price of the property is low we will take less.
Example 1. We bought a trailer on a lot. Paid 12,500, put 5,000 into rehab, took contractor one week. Sold it for 27,000. = 10,000 profit
Example 2. We bought a modular was forsale beside a multiplex that we purchased. Listed for 59,000. Bought it for 50,000, painted the deck and remulched planted a few flowers,< $2,000 rehab, and sold it the first day we ran our ad for $65,000.
Major rehab we need more money. Example Single Family Bank owned property purchased a few month ago. Listed 29,000 paid 22,000 expected 15,000 in repairs. After replacing termite infested floors and two walls we got 25,000 into it. We will be putting it on the market next week for 69,000. Should be a pretty quick sale. Should have almost 20,000 left after closing and carrying costs.
Answer to the second question. We have five properties that we are keeping so far. They cash flow at least 10,000 annually. The others we are selling. We buy and sell some others we keep. So far we have not used a realtor to sell. Our plan is to market ourselves for 30 days, if we dont sell then we will list. So far we have not needed to do that.