[CASE STUDY] $24k Saved by Not Buying a BAD HOUSE FLIP DEAL
Here's a quick case study on how Flipper Force and our house flipping calculator tool can save you thousands of dollars by preventing your from buying bad deals.
Guy thought he could make $30k profit on a potential house flip deal!
I saw a guy ask a question on the BiggerPockets' Rehabbing and House Flipping forum about a potential deal he had found.
He thought he could purchase for the property $260k, put $30k in renovations into the property and then resell the property for $330k and walkaway with a $30k profit.
The problem is he grossly underestimated his 'additional costs" (buying, holding, selling & financing costs)
He mentioned he had only assumed "additional costs" of $10k-ish for closing costs, points, interest, etc) in his analysis.
I chimed-in and said that I was concerned that his ‘additional costs’ seemed extremely low and that this property looked like a bad deal!
$24k & 6 Months of Time Saved by Not Buying a Bad Deal!
I ran his deal through our Flip Analyzer tool and there was actually only about $6k in profit in the deal.
If the investor would have bought this deal they may have wasted 6 months of their time flipping a house only to make $6k ($24k less than anticipated)!
This is why it's so important to always run your numbers through a detailed calculator before you make a buying decision, because often times a deal can look great in your head, but can end up being an extremely bad deal on paper once you crunch all of the numbers!
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