BRRRR Numbers not adding up - better to buy turnkey?
New investor here. I was hoping to do a BRRRR on a property but after getting repair estimates and looking at the comps in the area I am wondering if it makes more sense to go turnkey.
Home details:
SFH approx. 700 sqft. 2/1 bath (Hot area in my city where many investors are already flipping houses)
Purchase price: $47,000
Rehab estimate: $38,000 - $50,000 (House has been abandoned for some time, needs new everything, roof, plumbing, electrical, mold remediation, the list goes on)
Total investment: $85,000 - $ 97,000 (I know this is a large range however its my first time and I haven't gotten back all of the estimates for work)
Comps in the area approximately average $110,000 - $115,000 a few months ago but now in the midst of COVID-19 are selling for approximately $100,000.
Seems like if there are flipped properties available for $100k I should take out a traditional mortgage and invest $25,000 down payment and save myself the headache of rehab and trying to refinance for about the same price, am I missing something or are my assumptions right?