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Real Estate Deal Analysis & Advice

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Michael McDermott
  • Developer
  • Media, PA
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65
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Advice on upcoming flip

Michael McDermott
  • Developer
  • Media, PA
Posted Aug 2 2015, 13:07

Through a wholesaler associate of mine I have the opportunity to acquire a 3 bedroom, 1.5 bath, 1500 sq foot single family home. The agreed upon price is $91,000 with a $40,000 rehab (had my contractor come out and give me an honest estimate with me there, I've used him many times before). He said he could finish it in 4 weeks, the sales comp I have is right across the street for $189,000 and it took 2 months to sell. I know the area well as I grew up there. I also am a licensed realtor so I can save at lest %3 on the sale. 

I am ready to apply for a HML at around %12 but am having a little trouble coming up with the %20 down payment for the loan. I am thinking of taking a personal loan out from TD bank for $25,000 at %8. I ran all the numbers through the flip calculator and being very conservative with all the numbers I'm still looking over 20k profit. My question is; am I extending myself to far for this deal? And does anyone have any recommendations for HML in Pennsylvania?

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