[Calc Review] Help me analyze this deal

4 Replies

it looks good but that will depend on your estimates. Problems with Fix and flips are usually because of ...

1. Underestimate repair

2. Underestimate holding period

3. Overestimate selling price. 

Make sure you allow for room in the above. 

@Elijah Glenn , it never impresses me when I see pro forma figures that have been massaged in order to arrive at a pre-determined outcome. (In this case, exactly $10,000.00 profit. Oh, but don't forget to deduct tax on that).

I reckon there are just too many uncertain variables to risk paying (at least) $89k on a home that sold comps say should be worth $99k (if rehabbed to market satisfaction).

Looks to me like the "seller" is a wholesaler, looking for a flipper-wannabe to whom $10k seems magical... 

Originally posted by @Jim Pellerin :

it looks good but that will depend on your estimates. Problems with Fix and flips are usually because of ...

1. Underestimate repair

2. Underestimate holding period

3. Overestimate selling price. 

Make sure you allow for room in the above. 

 Thanks for the feedback.