OK, I haven't been able to get the detail I want out of my analysis, mainly because I'm having trouble entering all the stuff into Quickbooks, so I'll need to get with my CPA on that. (I could do it by hand, but my time is pretty limited right now.)
Anyhow, here are the numbers on this property:
Fix Up Costs
|Costs Subtotal ||- $143,254.87 |
|Late Close Of Escrow Fees Collected ||$800.00 |
|Selling Costs ||-$8,155.50 |
|Property Taxes ||- $872.59 |
|Income Subtotal ||$172,771.91 |
|Misc. LLC Expenses ||- $500.00 |
|Profit ||$29,017.04 |
|Time Property Held|| |
Total Return (ROI)
Fix Up Costs include the repairs I made plus utility payments during the time I held the property. Misc. LLC Expenses include the costs of running the business - a fax line, office supplies, etc. While not technically related to this property, this is the only property I've sold this year, so the profits of the entire LLC are really the same as the profits made by this one property.
All in all, that's not bad. If you look back to the rough estimates I made when I bought the place (check the Comments section), it seems I was wildly optimistic :-) I guessed $2,500 for fix up costs and I went way over that. Part of that was a $2,000 loss to the first cabinet guy. I also didn't originally intend on replacing the cabinets, which was about another $5,000. Additionally, I didn't know the house had aluminum wiring that would need to be fixed to the tune of about $1,000. But even excluding those unseen $8,000 costs, I still was over my fix up estimate by about $4,500.
Of course, I was also off on my estimate of the time it would take to get the property back on the market. I figured 2 months and it was closer to seven! But again, 2 months of that was my own fault for letting the ordeal with the first cabinet guy drag on and on. (FYI, if I had not used the first cabinet guy, I would have saved $2,000 and 2 months, which would have brought my profit to $31,017.04 and the holding time would have been reduced to 154 days, giving an ROI of 21.7% and an annualized ROI of 51.4%. And if I hadn't had to raise my buying price by $8,000, I could have had even better numbers... Woulda coulda shoulda....) It's almost embarrassing to look at entries titled "House 11 Should Be Listed By This Weekend!" that were posted 6 months ago. I was so naive :-)
The good news is I was also wrong on my estimate of the selling price. I estimated it would sell for $149,900 and we ended up selling for much more than that. Part of this error was due to me basing my estimate on past sales in the area rather than current listings, and part was due to the increased holding time - property values were rising dramatically as the cabinet ordeal dragged on and I profited from that.
So my investors are happy, I learned a lot, and we all made some money on this deal. Now it's on to the next one!