The Flip Formula Are you interested in buying houses with the intentions of flipping them to owner occupants? If so, here is the exact formula you should use when evaluating a deal for this purpose. This formula will show you what your pretax net profit should or could be. -After Repair Value minus -Purchase Price [this is what you are paying for the property] -Closing Costs [ this will vary but should be between 2 - 10% of the after repair value] -Insurance Costs [about $500 for 6 months on most homes] -Rehab Costs [figure in a contingency as well] -Mortgage Payments [figure at least 6 months worth of payments] -Utility Costs [figure at least 6 months of costs] -Property Taxes [figure 6 months at least] -Real Estate Agent Commission [varies but will be between 4 - 6% of sale price] -Sales Costs [transfer tax etc, figure 1.5% of sale price] =Your Potential Pre Tax Profit Good luck. This is an awesome strategy to generate quick cash profits. Log onto PaDeals.com right now to be part of the most exciting real estate opportunity found anywhere. Zack Wiest PaDEals.com 717-901-7763 Ext. 300
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.