Updated over 12 years ago on . Most recent reply
First Rehab Under Contract!
Hey everyone,
I got good news today. After several offers have been rejected I finally got my first rehab under contract today! I plan to walk through with my contractor in the next day or two to get a formal bid written up but we have already been through once to ball park the costs. Here's how the prelim numbers work out:
Purchase price: $100,500 (all cash from HELOC)
Closing costs: $2,000 (inspection, survey, etc)
Renovation costs: $35,000
Holding costs including HELOC payments and utilities: $3,750 (assuming 6 months)
ARV: $180,000
Closing costs: $15,250 (assuming $3,500 of buyer's closing costs, 5% realtor commissions, $2k for staging, etc.)
Net Profit: $23,500!!
It's not a home run by any means, but I'm not sure those exist on the MLS today. I feel pretty solid about the house, it is a big house (2700 sq ft) on a half acre lot with a pool and a separate living space beyond the pool like a mother in law suite with a kitchenette, bed and bath. No major problems with the house just a full cosmetic rehab on a 2700 sq ft home which is why the budget is so high. I'm obviously going to see if I can hammer down the contractor a little bit but we will see what happens. I'll try to keep everyone update but I wanted to post more for feedback. Here goes nothing..........