Updated almost 9 years ago on .
First Spec Project Advice
I am considering my first rehab project. I have been a broker for 13 years and done two projects but one I live in and the other was a rental home and I only renovated it to sell it. This would be my first purchase solely to flip. Here are my numbers, curious if my numbers make sense and if this is a wise investment:
Purchase Price: $600,000
20% Down: $120,000
Total Closing Costs: $17,500
Total Other Costs (Carrying, Taxes, Insurance): $22,850
Total Rehab Costs: $262,500
Total Property Costs: $422,850
Estimated Sales Price: $1,100,000
Estimated Closing Costs on Sale: $43,575 (Reduced from standard 5% as I am a broker so my fee is removed)
Potential Net Income: $170,000
Return on Investment: Approx 40%
Expected Timeframe: 6-9 Months