House gets "Flipped" for 19.4% gross profit in 6 months!

Blog by Arnold Shuchat | January 24th, 2013

A Single family residence built in 1986 was purchased for $720k in June of 2012 and was just sold for $860k in the Lackner area on Jaskow Dr.  It looks from the listing that new flooring and some bathroom updates were added after the purchase.  Estimating these updates to be around $15k and considering property purchase taxes and outgoing commissions, legal costs and carrying costs at prime +1%, I figure the seller netted around $80,000 on his investment of $720k or 11.1% in around 6 months.

What is noteworthy is that he did this at a time when the entire negative internet world had their collective tails between their legs crying about the market "BUBBLING" which just proves that some whine, and some act and that we can sit around here and pontificate about market direction and lottery winnings, but that if we don't buy a ticket, we won't be winning. Good work, and thank the lord, because it was on my street!