What the Flip??
I need help with making sure our numbers are good. This is our first true non owner occupied flip... So here goes.
Forclosure Purchase price is $43,000
Conservative ARV biased on comps in the area of $85,000
Repair cost $9,780
Repairs include. New roof, carpet paint, flooring, windows, bathroom update, kitchen and a ton of cleaning and yard crap hull.
Holding costs are $205 a month
We will Pull an interest only loan of $55,000 at 5.5% for the first 6 months then it will be amortized at 15 year. At the same interest rate. With a 5 year ARM. Although we plan to sell in less than 6 months.
Loan costs will be about $3500 so we will get about $8,000 at closing to use for rehab funds.
Total expences are about $15,000 for a total of $58,000
Sellers commissions & closing. $7,400
Return? $15,000.
Any thoughts? Constructive criticism would be great.