OKC Flip Report
Example: 4,800 sq ft flex building, Oklahoma City
Exit from the exit value you gave. 6-month hold. Every figure below is from the numbers entered and the terms at the bottom.
Close: on your numbers, the max modeled price is 2.2% under the asking price.
$440,000Max modeled price (12% on cost, your assumptions)
$500,000Break-even price
$54,188Profit at the asking price
$209,550Cash needed at max modeled price (21 × $10k units)
Price ladder
To hit 12% you need $10,000 off the asking price. Use these rows to plan your offer and counter.
| Price point | Price | Profit | On cost | Cash needed |
|---|---|---|---|---|
| Asking price | $450,000 | $54,188 | 9.8% | $212,813 |
| Max modeled price | $440,000 | $64,950 | 12.0% | $209,550 |
| 5% under ask | $428,000 | $77,865 | 14.8% | $205,635 |
| 10% under ask | $405,000 | $102,619 | 20.4% | $198,131 |
What if
The exit value drives everything. Here is the max modeled price if things go worse than you entered.
| If | Max modeled price | Change |
|---|---|---|
| Everything goes to plan | $440,000 | — |
| The exit comes in 5% lower | $415,000 | −$25,000 |
| The exit comes in 10% lower | $390,000 | −$50,000 |
| The reno runs 20% over | $429,000 | −$11,000 |
| It takes 9 months to sell | $429,000 | −$11,000 |
Cost sheet
Line by line, at the asking price, at the max modeled price, and at that price if the sale takes 9 months.
| Line item | At asking price | At max modeled price | Max modeled, 9-month sale |
|---|---|---|---|
| Purchase price | $450,000 | $440,000 | $440,000 |
| Renovation | $60,000 | $60,000 | $60,000 |
| Closing costs to buy | $9,000 | $8,800 | $8,800 |
| Lender points | $6,750 | $6,600 | $6,600 |
| Interest | $18,563 | $18,150 | $27,225 |
| Carrying costs | $6,000 | $6,000 | $9,000 |
| Total cost | $550,313 | $539,550 | $551,625 |
| Exit value | $650,000 | $650,000 | $650,000 |
| Costs to sell | $45,500 | $45,500 | $45,500 |
| Profit | $54,188 | $64,950 | $52,875 |
| Profit on total cost | 9.8% | 12.0% | 9.6% |
| Loan amount | $337,500 | $330,000 | $330,000 |
| Cash needed | $212,813 | $209,550 | $221,625 |
Per square foot
Asking $94/sf. Max modeled $92/sf. Exit $135/sf.
Terms used
- Hard-money loan: 75% of price, 11% interest plus 2 points.
- Closing costs to buy 2% of price; costs to sell 7% of exit; carrying costs (taxes, insurance, utilities) $1,000 a month.
- Target 12% profit on total cost. Max modeled prices are rounded down to the nearest $1,000.
- Estimates from the numbers given, not an appraisal or investment advice. The exit value drives everything: base it on sold comps or a broker opinion of value.