I have a opportunity to a single family flip deal for $76000. I figured It would take $20000-$25000 to rehab the property. I look at some comps and figured the property would be worth $130,320. I have a banker that will do a rehab loan to make the purchase and rehab this property with out a down payment. Our lender will lend 80% of the ARV and if I bring a deal to him were I can purchase the property and rehab it for the 80% there no down payment required. I'm also considering make this a buy and hold investment. The lender will do a 30 year loan at 5%. Let me know what you think about this deal as a buy hold or fix and flip? I talked to a property manager and they said it would rent between $1100-$1200.
You might as well wholesale the deal. Think about it, you've found a good deal and theres enough space for your finders fee and enough for another rehabber to profit off of it. You already have the numbers to present to him and you have a good perspective on where the investor is coming from so i think that would be a great idea.
WTF! @Mark Lacsina, with all due respect....shut up! I mean really, who told you that if you find a great deal and you have the means to take it down, that you should give it away!?! Please, take advice for a little while at least before giving it.
@Patrick Rowe , it sounds like you have a great base hit. Good find. Get it under contract. It won't make you rich, but go find a dozen more like this one. I'm gonna trust that you'll do your homework and vet all the numbers. Based on the numbers you've listed, you'd ought to be able to net $15k-$20k on the flip or about $256/mo in cashflow. Not big money, but with very little money out of your own pocket, the percentage returns should be astronomical.
You haven't said a word about operating expenses as a buy and hold nor rehab costs to get the property to "safe, clean and livable" (which normally will be well below the cost to make a property marketable for retail sale.) That owuld skew the results. a bit one way or the other, so double check the math.
That being said, it looks like you have a good deal here. Don't let anyone talk you out of it. Congrats!!
@Tom Mole Dude chill out. Im only 17
@Tom Mole - Thanks for the reply, I was thinking the same way about this deal. I actually moved forward with this deal today. I'm having a good month so far, I just closed on one property this month and I have another under contract.
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