Help analyzing flip deal

3 Replies

Hey guys I need an opinion on if this is a good deal or not.  I have a 2 bed 1 bath 647sqft house I am look at and it is priced at $18,500.  The owner is currently in the process of updating and repairing the home herself.  On Zillow it’s zestimate is around $49,000 while comparable homes range from $26-$86k.  The owner is firm on the price of $18,500.  Can you guys give me your opinion?

@Justin Nichols  With that small square footage and only being a 2 bedroom, you are going to have a very small amount of people to sell to which means you could be holding it quite a while. I would move on to a 3 bedroom or a 2 bedroom over 1100 square feet that has the ability to add a third bedroom.  

Are small houses such as that common for where you are looking to buy? If you do not have MLS access, I would speak to a trusted real estate agent and see what the DOM and price /Sq Ft is for similar homes in that area. Then go from there and use the flipping calculator to figure out how much you can offer and still make a profit.

Originally posted by @Account Closed :

@Justin Nichols  With that small square footage and only being a 2 bedroom, you are going to have a very small amount of people to sell to which means you could be holding it quite a while. I would move on to a 3 bedroom or a 2 bedroom over 1100 square feet that has the ability to add a third bedroom.  

 Thank you!