4 Bed, 2 Bath Single Family Home
Purchase Price: $40,000
Pre-purchase inspection: $325
Total repairs while we owned property: $13,264
Total cash invested: $10,505
Line of Credit: $10,824
Mortgage: $32,260
Fix, Rent, Sell
We purchased the property, a 4 bedroom, 2 bathroom single family home, in July 2021 for $40,000 and sold it in March 2023 for $79,000. We sold it to a couple who were first-time homebuyers and the first in their families to own a home. We put a new roof on the property, new flooring in the dining room, and made other minor repairs throughout the house. We used our own equity and bank financing to pay for this deal.
We rented the property while we owned it. The monthly cashflow from renting — after operating expenses, reserves, and debt service (i.e. line of credit and mortgage) — was $100. The starting rent was $650/mo and we raised it to $842/mo.
Finally, we refinanced the property in June 2022 because we (unsuccessfully) tried to execute a BRRRR.
Financials
Cash Proceeds from sale (after closing costs and mortgage payoff): +$29,949
Plus total cash flow from rental: +$2,100
Plus proceeds from cash-out refi: +$3,214
Minus Remaining balance on line of credit: -$9,932
Profit: $25,330
Minus cash invested at purchase: -$10,505
Final Profit: $14,825
Pre-Tax ROI (based on cash invested): +141%
Pre-Tax Annualized ROI (based on cash invested): +65.85%