Afraid to commit. Someone check my numbers?

6 Replies

Hi everyone! I think I found a deal! My confidence is like |-| that big though. I've been house hacking for a month now and I already want to buy my second property. For this one, I'm thinking flip would be valuable because housing in this area is stupid expensive. But I'd consider fixing it up and renting it out. I'm scared I didn't put in all the right numbers or I added a zero in the wrong place. So here's an outline of the numbers and if someone can let me know their thoughts, I'd really appreciate the help. 

SFH 3/1 on 1.5 acres.

Price: $125,000

Est repairs: $30,000 (potentially more)

Est ARV: $210,000 on the low end. Max $250k (comps are in the 260's but I'm conservative. Land value is crazy high around here so I'm a little optimistic though).

Historical rent value: $1,300 (I conservatively estimated $800/mo which is amazing for my area and the calculator suggested the property still cash-flowed).

Ann taxes: $1,317

I'm not sure if I missed a value so let me know what you all think! I'd love to hear about it if anyone thinks it's a good deal or even if you want to partner on it (if it's still available)!

Originally posted by @Alexis Ankersen :

Hi everyone! I think I found a deal! My confidence is like |-| that big though. I've been house hacking for a month now and I already want to buy my second property. For this one, I'm thinking flip would be valuable because housing in this area is stupid expensive. But I'd consider fixing it up and renting it out. I'm scared I didn't put in all the right numbers or I added a zero in the wrong place. So here's an outline of the numbers and if someone can let me know their thoughts, I'd really appreciate the help. 

SFH 3/1 on 1.5 acres.

Price: $125,000

Est repairs: $30,000 (potentially more)

Est ARV: $210,000 on the low end. Max $250k (comps are in the 260's but I'm conservative. Land value is crazy high around here so I'm a little optimistic though).

Historical rent value: $1,300 (I conservatively estimated $800/mo which is amazing for my area and the calculator suggested the property still cash-flowed).

Ann taxes: $1,317

I'm not sure if I missed a value so let me know what you all think! I'd love to hear about it if anyone thinks it's a good deal or even if you want to partner on it (if it's still available)!

Using simple numbers I'd probably do the project: (Sorry about the formatting, it looks good on a spreadsheet but loses it's formatting here) I try an image



Option 1 ****
Option 2

BUY
**** BUY


Purchase $125,000 **** Purchase $125,000

Rehab $30,000 **** Rehab $30,000

Closing 2,000 **** Closing 2,000

July Carrying $1,200 **** July Carrying $1,200

Aug Carrying $1,200 **** Aug Carrying $1,200

Sep Carrying $1,200 **** Sep Carrying $1,200

Total Costs $160,600 **** Total Costs $160,600



****



SELL
**** SELL


ARV $210,000 **** ARV $240,000

RE Agent Fees $12,600 **** RE Agent Fees $14,400

Closing 2,000 **** Closing 2,000

Total Costs $160,600 **** Total Costs $160,600

Profit $34,800 **** Profit $63,000



****




























You can buy it at 125 and it’s worth 250 after only 30 grand of rehab .. you sure about that . That quarter million dollar home will only be 1300 in taxes ? You sure about that ?

Things to ponder

Make sure to double check that your comps are accurate! 3bd/1br is considerably less valuable than a 3bd/2br. Also, remember that your taxes change for the new sale price.

Just helpful things to remember in your due diligence!

Originally posted by @Alexis Ankersen :

Hi everyone! I think I found a deal! My confidence is like |-| that big though. I've been house hacking for a month now and I already want to buy my second property. For this one, I'm thinking flip would be valuable because housing in this area is stupid expensive. But I'd consider fixing it up and renting it out. I'm scared I didn't put in all the right numbers or I added a zero in the wrong place. So here's an outline of the numbers and if someone can let me know their thoughts, I'd really appreciate the help. 

SFH 3/1 on 1.5 acres.

Price: $125,000

Est repairs: $30,000 (potentially more)

Est ARV: $210,000 on the low end. Max $250k (comps are in the 260's but I'm conservative. Land value is crazy high around here so I'm a little optimistic though).

Historical rent value: $1,300 (I conservatively estimated $800/mo which is amazing for my area and the calculator suggested the property still cash-flowed).

Ann taxes: $1,317

I'm not sure if I missed a value so let me know what you all think! I'd love to hear about it if anyone thinks it's a good deal or even if you want to partner on it (if it's still available)!

 Knowing only the numbers, I'd probably do the project: I was able to creat an Image of the spreadsheet to make it easier to read

Thank you everyone for your replies! I'm curious: How much profit are people comfortable taking when doing a flip? How low will you go basically? Is $5k not worth the hassle but $10k is doable?