Make $79,000 On This Southside Virginia Deal!!!!

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Make $79,000 On This Southside Virginia Deal!!!!

Guy M.
Flipper/Rehabber · Williamsburg, VA · Member since 2008 · 144 posts · 105 votes

Here's an opportunity to earn $79k on a flip.

Acres: 1.39

Purchase Price: $145,000

Rehab Costs: $25,000 (No structural issues; needs updating)

Approx. Closing Costs: $2,780

ARV: $249,000 (BPO)


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  • Guy M.
    OP
    Flipper/Rehabber · Williamsburg, VA · Member since 2008 · 144 posts · 105 votes
    10y

    Bump.

    0Reply
  • Courtney Van
    Investor · Windsor, VA · Member since 2016 · 40 posts · 6 votes
    10y

    what are the comps?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Guy M.  make 75k is a little misleading

    you have holding costs.. you have sales costs.. tax's insurance etc etc.

    probably more like 30 to 40k.. but still a great deal for someone !!!

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  • Bobby Ritter
    Accountant · Dracut, MA · Member since 2015 · 16 posts · 4 votes
    10y
    From what I read, closing and holding costs end up around 10-15% of ARV so a $40k budget for these costs would be a good conservative budget.
    0Reply
  • Bobby Ritter
    Accountant · Dracut, MA · Member since 2015 · 16 posts · 4 votes
    10y
    Using the 70% rule, if rehab costs are $25k this warrants further investigation.
    0Reply
  • Guy M.
    OP
    Flipper/Rehabber · Williamsburg, VA · Member since 2008 · 144 posts · 105 votes
    10y
    Originally posted by @Jay Hinrichs:

    @Guy M.  make 75k is a little misleading

    you have holding costs.. you have sales costs.. tax's insurance etc etc.

    probably more like 30 to 40k.. but still a great deal for someone !!!

    Yup, you're right. Estimated holding costs is based off of 90 days. The rehab is not crazy unless you want to do an HGTV makeover... then we're talking at least $35k+ in rehab costs. In areas like Powhatan, people like their land and quiet. This is a solid deal. No ugly house here. Here's the break down:

    COMPS:

    Address Beds Baths Sqft Acres Sale/Sold Price
    Comp #1: 1345 Avatar Drive, Powhatan, VA 23139 3 2 1678 1.27 $195,000
    Comp #2: 1851 Fairpine Drive, Powhatan, VA 23139 4 2 2038 2.054 $254,950
    Comp #3: 2485 Loch Gate Lane, Powhatan, VA 23139 3 2 1787 2.51 $277,500
    Comp #4: 2084 Bienvenue Place, Powhatan, VA 23139 2 2 1708 0.236 $327,000
    Comp #5: 1956 Mill Quarter Road, Powhatan, VA 23139 3 2 1674 55.44 $395,000
    Comp #6: 1369 Avatar Drive, Powhatan, VA 23139 3 2 1620 1.47 $128,030
    Comp #7: 4383 Worsham Road, Powhatan, VA 23139 3 2 1840 $199,900
    Comp #8: 955 Rocky Ford Road, Powhatan, VA 23139 3 2 1712 10.53 $269,950
    Comp #9: 1690 Capeway Road, Powhatan, VA 23139 3 2 1879 16 $349,950
    Comp #10: 1530 Hollow Log Drive, Powhatan, VA 23139 3 2 1864 5.78 $200,000
    Comp #11: 2750 Dorset Ridge Road, Powhatan, VA 23139 3 2 1646 2.004 $232,500
    Comp #12: 2502 Loch Gate Lane, Powhatan, VA 23139 3 2 1920 3.3 $238,000
    Comp #13: 2553 Moon Glow Court, Powhatan, VA 23139 3 2 1848 2.257 $267,500
    Comp #14: 1905 Lower Mill Road, Powhatan, VA 23139 4 2 2010 2.319 $271,000
    Comp #15: 3905 Mill Station Drive, Powhatan, VA 23139 3 2 2043 3.791 $320,000


    COSTS:

    COST SUMMARY
    Low High
    ARV: $226,700 ARV: $248,600
    Purchase Price: $145,000 Purchase Price: $145,000
    Down Payment: $14,500 Down Payment: $14,500
    Total Funded: $130,500 Total Funded: $130,500
    Closing Costs: $2,300 Closing Costs: $2,300
    Deffered Points: $2,610 Deffered Points: $2,610
    Holding Costs: $4,200 Holding Costs: $4,200
    Agent Fee: $6,801 Agent Fee: $7,458
    Sale Closing Costs: $5,199 Sale Closing Costs: $5,199
    Rehab Costs: $20,000 Rehab Costs: $20,000
    Inspection: $295 Inspection: $295
    Taxes: $1,481 Taxes: $1,481
    Insurance: $805 Insurance: $805
    Appraisal: $450 Appraisal: $450
    Potential Profit: $37,559 Potential Profit: $58,802
    0Reply
  • Damien CobbsPro Member
    Real Estate Investor · Chesterfield, VA · Member since 2009 · 11 posts · 0 votes
    10y

    Congratulations to whomever got this property. Any word on the total rehab cost? Given that location, I would expect it to sell fast and close to the asking price.

    Damien

    0Reply
  • Guy M.
    OP
    Flipper/Rehabber · Williamsburg, VA · Member since 2008 · 144 posts · 105 votes
    10y

    @Damien Cobbs I went ahead and closed on the property, Damien. It's currently on the market for $242,500. Hopefully, it'll be under contract this week. Rehab costs were roughly $22,500. 

    BTW, thank you.

    1Reply
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