Selling flip with significant price increase with little work done.

[Daniel Fisher]

If I buy a house at a significant discount and do very little work, what problems might I run into when I try to sell again at market value within a month?

Here are the numbers:

ARV $185,000
Repairs $11,000
Purchase Price $70,000

This house is in probate and has not been on the MLS.

Does anyone have suggestions how to circumvent any issues that may arise with appraisals or lenders trying to nix the deal?

[J Scott]

Originally posted by John H.:

Can someone clarify something for me, is this for all types of properties, or just single family homes that you will see these issues with a quick sale? Would a 2 family with rents that could justify the price would be ok on a quick flip with 100% profit?

It has less to do with the type of property and more to do with the type of loan. This would apply to any FHA or residential conventional loan.