Flipping Houses

5 Replies

Getting close on our first deal!

It's a REO SF brick selling for 69,000. Total rehab 889Sqft. 2bd 1bth. Lot size 4,700sqft. 2 car garage. ARV 130,000. Any advice? asking price?

If your from chicago there is a lot better opportunities out there, then the current one your looking at.   Personally I never like to get into a building under 1000sq ft, some ppl do and like to take that risk, I personally love to be liquid and being under 1000 sq ft will have a very small demographic of people that will buy that property.  Were abouts in chicago are you?   If your interested in flipping houses, around that purchase price I would get ahold of frank montro, he's the only guy that I would trust right now in the south and is bringing over 35 years experience to the table.  

Also you said total rehab so complete guy, I mean if you could keep the rehab under 20k, then your look at some sweet margins, but once again I just feel there's better deals out there, best of luck

Dustin

@Account Closed

Have to start somewhere. Just make sure you are solid on your repair #'s and the ARV.

What suburb or neighborhood?

@Account Closed

How long has the reo been on the market? We bought a brick one similar to the size you talk about. It was listed at 69k we got it for 49k. Banks do negotiate. Will YOU be ok if you lose money on the deal? If so go for it! Worse case is losing money and learning loads, best case is makeing good money and learning lots. 

As they say, if you do one, you will most likely do a lot. 

Originally posted by @Account Closed :

Getting close on our first deal!

It's a REO SF brick selling for 69,000. Total rehab 889Sqft. 2bd 1bth. Lot size 4,700sqft. 2 car garage. ARV 130,000. Any advice? asking price?

 Does getting close mean you have it under contract or you're making an offer?

Are you planning on holding or flipping?

Advice:

  • Make sure the ARV is for 2 bd 1bth
  • Check the Days on Market (DOM) or Market Time (MT) for the 2bd/1bath <1000 square foot homes within 1 mile; that have been renovated.  The average DOM will affect your holding cost.  (Homes < 1000 square feet usually stay on the market longer unless they are in highly desirable areas or it's being used for a rental)
  • Check to see if you can finish the basement;  maybe add a bedroom and/or bath as your square footage given the current small square footage.  Check the basement ceiling height.  
  • Asking price- All depends on your profit margin target.  After you deduct the purchase & closing costs, renovation costs then the selling costs will you meet your profit margin requirements?  

I believe there are better deals out there. Whats the renovation budget?

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