Flip Investment

Flip Investment Before and After

I. Flip Strategy is an investment method comprised of purchasing a distressed asset deep in the money, completing value-add rehabilitation, and selling the asset within a designated investment period.

II. Investment Description

  • Three unit asset located in the Urban Market of Newark, New Jersey
  • Asset was repositioned with cosmetic, functional and energy efficient upgrades
  • Asset was sold to a passive cash flow investor utilizing the Cashflow to Freedom Demand Channel
  • Total Cost for the Asset was $214,000
  • Asset After Repair Value is $340,000

II. Investment Cost & Return Brakedown

A. Project Costs

    • Purchase & Commission Cost: $120,000
    • Purchase Closing Cost: $1,954
    • Asset Insurance: $2,750
    • Construction & Overage Costs: $84,796
    • Holding Costs: $4,500

B. Project Returns

    • Invested Equity: $214,000
    • Net Cash Return: $50,600
    • Return on Investment (ROI): 23.6%
    • Investment Cycle: 8 months