Updated over 10 years ago on . Most recent reply
MY FIRST DEAL!
Hello BP family!
It's been a while since I've posted a forum but I feel it's time to start becoming more active! I took everyone's advice about a year ago and finished college. I am now a licensed hygienist, and while although I don't plan on practicing for very long, it is nice to have steady income. I stayed true to my word and dove right in to REI, joining two REIA's, introducing myself to EVERYONE and even obtained a pretty hefty collection of business cards. It's now been a month and my face (and quirky personality) is becoming familiar to quite a bit members. I think I am ready to do my first deal... let me know what you think.
In North Port, Florida (SW coast), I found a1998 REO 90k, 3/2, 1400 SQ FT, corner lot, VERY nice quite neighborhood, before inspection it seems to be all cosmetic. Comps: 135-165. I put together a spreadsheet and my max budget for reno is 12k. I've included closing costs and power/rent for the month and is estimated at 40k profit if it sells for 155k. I feel like that's too good to be true and am missing some huge expense. There's still $1,400 left over in budget for any unforeseen damage... is that enough of a cushion?
Oh, P.S. I am going through a company called LendingHome because the hard money lender that I was introduced to has a full plate and doesn't seem to be comfortable putting anymore pressure on himself lending to a new investor. The terms I from the third party lender is 11% interest, 4 points for 12 months.
I would appreciate ANY AND ALL advice. I feel a little (actually a lot) in over my head. Did I make the right decision diving in to a flip for my first deal??