Birmingham, AL 35206 · 2 BR · 1 BA · 954 Sq.Ft.
This example flip illustrates how quick rehabs can generate outsized returns when purchase and rehab costs are kept low. The metrics below summarize the acquisition and sale.
| Purchase Price | $24,000 | After Repair Value (ARV) | $60,000 |
|---|---|---|---|
| Rehab Costs | $18,865 | Purchase Costs | $1,230 |
| Down Payment | $10,716 | Financed Amount | $18,379 |
| Interest Rate | 9.0% | Holding Period | 3 months |
| Selling Costs | $4,200 | Total Profit | $23,688 |
This small single‑family home was purchased at a deep discount due to cosmetic distress. The rehab scope included interior paint, new flooring, kitchen and bathroom updates, and landscaping. After three months of work, the property was relisted and sold to an owner‑occupant.
Year Built: 1940
Parking: Driveway
Lot Size: 6,200 Sq.Ft.
Tags: fix‑and‑flip, cosmetic
Assumptions used for this flip:
| Acquisition & Rehab | |
|---|---|
| Purchase Price | $24,000 |
| Closing Costs | $1,230 |
| Rehab Budget | $18,865 |
| Financing | |
| Financed Amount | $18,379 |
| Down Payment | $10,716 |
| Interest Rate | 9.0% |
| Term | 12 months (interest only) |
| Holding & Selling | |
| Holding Costs/mo | $750 |
| Selling Costs | $4,200 |
| Projected Sale Price | $60,000 |
The table below compares total profit across several rehab durations. Longer rehabs incur additional holding costs and reduce annualized ROI.
| Duration | Holding Costs | Sale Proceeds | Total Cost | Total Profit | ROI |
|---|---|---|---|---|---|
| 1 month | $750 | $60,000 | $44,845 | $15,155 | 135.5% |
| 2 months | $1,500 | $60,000 | $45,595 | $14,405 | 126.7% |
| 3 months | $2,250 | $60,000 | $46,345 | $13,655 | 117.8% |
| 4 months | $3,000 | $60,000 | $47,095 | $12,905 | 109.1% |
| 6 months | $4,500 | $60,000 | $48,595 | $11,405 | 90.2% |
Similar fixed‑up homes in the neighborhood have sold for between $58,000 and $62,000. The average sale price per square foot for 2 bed/1 bath homes is around $65.
| Address | Beds | Baths | Sq.Ft. | Sale Price | $ / Sq.Ft. | Distance |
|---|---|---|---|---|---|---|
| 816 Rugby Ave | 2 | 1 | 960 | $60,500 | $63 | 0.2 mi |
| 830 Rugby Ave | 2 | 1 | 945 | $58,750 | $62 | 0.3 mi |
| 810 Rugby Ave | 2 | 1 | 970 | $61,200 | $63 | 0.4 mi |
County records describe this property as a single‑family residence built in 1940 with two bedrooms and one bath. The lot is just over 6,000 sq.ft. and the home last transferred title in 2019 for $18,000.
Tax Assessment (2025): $20,000
Estimated Property Value: $58,000
Previous Sale: 2019 for $18,000