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“After 10 months, the principal won’t have even been touched. Let’s say we sell it for $60,000. After commission, that’s $57,000. There’s a $20,200 difference between the loan and the sales price. Our profit will be $6,000 on an investment of $14,000. That gives us a return on investment of 42%. Another thousand in resale price and we’d be at a 50% return. If we can drop repair costs to $5000, then we get 78%.”“You’re basically saying that at a minimum we should get $6,000 out of it, but that is a conservative estimate.”“Exactly. It can go up substantially. We can try negotiating the price down on purchase, hold costs on remodeling, and market it for more.”“That would be nice.”“Let’s not count our chickens before they hatch. Let’s see how much repair that house is going to require.”“Good point,” Tim said. “Cynthia, can we see the house Saturday?”“There should be no problem with that.”Tim said, “What about my house?”“That’s a problem.”“Why?”“We should do the exterior before working on. We didn’t rush, but there was no dessert or after-dinner coffee.Cathy wanted to see the rest my place. I had inherited a very big, nice 19th century home from my paternal grandfather, and was living there. She had of course been in the house, but other than the kitchen, dining area, and the family room, she had not seen the rest of the house.I gave her the nickel tour and she was amazed at how big it was. It has four bedrooms and two full baths upstairs, and a guest and master suite with attached baths down. There is a formal library, an office, and what used to be called a smoking parlor. I had converted that into a pool room. Then there is the exercise room and the semi-attached five stall garage with three cars currently in it. Above the garage is a three-bedroom mother-in-law apartment that was originally three servant’s efficiency apartments.After the tour, Cathy wanted to know how a single guy kept the place so neat and clean. I explained that my grandfather had set up a fund.
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