My First Flip!!....Well maybe
OK so this is potentially my first flip and my first venture into real estate investment. A family member was left a 3 bedroom, 2 bath, 2 car garage, 1200 sq ft. house in the Crestmont Park area of Houston, 77048 area code, and is in need of repairs. She was first offered 37k and then 42.5k for the home by separate investors, but will allow me to have the place fixed up in order to sell at a higher price and pocket the difference. I was quoted by a reputable contractor for 17.5k in repairs/rehab. The part thats really hard for me to figure out is the ARV because the prices look to be all over the place. From what I can tell in the area, distressed homes sell for 30-45k and 75k would be an ARV on the semi-conservative side of what a rehabbed home would sell for. The BP flip calculator places my ROI at 16.6%. Ive also seen rehabbed comps that sold for 85k recently. I would really like to know the thoughts of any experienced investors or anyone familiar with the area. Thanks!