Flipping for profit can be fun but you have to know your numbers first! Make sure you see the before and after pictures below!
In my situation, my business partner is a contractor. We both put up equal amounts to purchase this property located at 1209 Queen St East in Leslieville. We estimated that the cost to renovate would be $25,000 and we added 10% for unforseen expenses. This brought our renovation budget to $27,500.
The other costs involved in a flip are the costs to purchase, the costs to carry the property and finally, the costs to sell – namely real estate fees.
In our situation, we agreed to not get paid for the services that we brought to the table and get paid once the property was sold and closed. We would still have to pay real estate fees to the Cooperating Agent for bringing us an offer from a buyer.
Here is a summary of our expenses thus far:
Costs to purchase = $6,134 (includes land transfer taxes to the province and the City of Toronto, legal fees and taxes/maintenance fees paid by the seller adjusted on closing)
Renovation Costs = $28,000 (includes all new appliances)
Costs to Carry as of today’s date = $3,434 (includes interest on line of credit, maintenance fees, utility bills, estimated cost of property taxes)
Privaly legislation does not permit me to post what we paid for this unit but it is currently being offered at $335,000
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