Daly City Rocking The Overbids

dalycity

#143

If Dioworld thinks the exit price is crazy, this project couldn’t have possibly penciled out a year ago for the investor.

WQJ would you have taken it on if you knew these numbers ahead of time?


#144

No. Made money. Remember my flip that I showed you in your visit? Similar timing and financials.


#145

How much did he make? Are you assuming his money is free? Property tax alone is 12k.


#146

I checked public record, he had a loan for $653k. Still made money even if debt payoff accounted for.


#147

Yes, I would.


#148

I think he still made 120-150k.
I’m just suprised people bought it for 1.45mil , that price at least should legalize the bonus room/kitchen


#149

I’d like to see the math how he could make 120k…

Loan interests, labor, material, property tax, transaction fees on both sides… Took 9 months to finish.


#150

And closed within four days too…must be all cash :fearful:


#151

Math works out. Try it for yourself… :wink:


#152

cheaper material. his loan interest and p tax is less than 35k. let’s make transaction fee 70k
362k -35k-70k. labor/material = 120k-150k
and maybe himself is a agent and painter who knows.


#153

This is a lame flip. If market was flat, he would lose money.


#154

Yup. Too much risk. No one expecting someone to pay 1.45 m in dc for 2 bdrm. He got lucky on that flip


#155

I agreed that they got lucky. Again those rare sales set the market for 12 months down the road. I remember one or two random houses selling for 1.15M - 1.2M about a year ago and these days those are the norm.


#156

A low inventory phenomenon. In Austin, such odd balls do happen but can’t set the tone for the market.


#157

Not much profit, when you include carrying cost and agent fees


#158

Agree profit is not over 100k


#159

The 150k profit is after those cost was taken into account. But you are right, better to keep as rental if you have the money.


#160

If your assement is 150k renovation fee, then their profit after all cost, mortgage, property tax, agent fees, staging , etc will be around 50k


#161

No, redo your math.


#162

Haha I did, you can post the numbers here. They bought for 1.088 means their closing amount is probably 15k more than that