The Flop Side of Flip this House!

One of my favorite shows to watch over the past few years is Flip This House. About 2 years ago, one of the showes was produced here in Myrtle Beach on an ocean view home.

The home was a home located in one of the prime areas of Myrtle Beach, but needed some work. The "flippers who renovated the home added a new kitchen, new floors, new landscape & exterior paint. The typical things you see on the show. As always, the show ended with the ominous Open House where they showed many people viewing the property and as usual end the show with the update on the property. This one, they ended with "Several of the buyers who looked at the home had high levels of interest and this home should be sold in the next few days." One of the other things they discuss is the price the property was purchased for plus renovations costs to figure out their profit from the flip....

Here are the actual results from that property.

Purchase price:$837,000 + Renovation costs.

Listed: Originally in November 2006 for $1,199,000.

Sold Price: $873,000

Sold Date: February 2008.

Days on Market: 458+

Commissions Paid: over 50k

So, the final results from this flip:

Net loss of over $15,000 without the costs of renovations even factored in. Plus the addition of 15 months of interest on mortgage payments. So when you are thinking of flipping, make sure you really can flip, and not just be another major flop.

If you are investors looking for good real estate Deals in Myrtle Beach, South Carolina, contact Jeremy Blanton of The Blanton Team with Coldwell Banker Chicora Real Estate. They are the top team in their office and are a part of the #1 Coldwell Banker in South Carolina.