Glen Rock, Bergen County - Market for Potential Flip

[Soo Y.]

I'm considering purchasing a SFR from a wholesaler. These numbers make sense to me but would like to get your thoughts:

1. Purchase price: $550,000 for existing ~2,000 sq. ft. 4 br, 2 bath house on flat, 14,000 sq. ft. lot in quiet cul-de-sac;

2. Rehab costs to expand the first floor and second floor (add-a-level) should be between $200K-$250K (total of ~3,000 sq. ft.); and

3. ARV = $900K based on a similar after-rehabbed house that just sold two doors down (also ~3,000 sq. ft.).

Caveats:

1. For some reason, the high end inventory in Glen Rock doesn’t seem to be moving well, notwithstanding the house two doors down received multiple offers.

2. The rehab will take at least a few months so I'm cautious that the market may turn by that time and we'd be in the off-peak season.

Thanks in advance for any thoughts on any additional considerations or whether I should take up this project.

[Judy Parker]

The market is changing. High-end Bergen County homes aren't moving as quickly as they once did.

However, Glen Rock and Ridgewood homes are always in demand due to the proximity of the commuter train into NYC.

And your profit margin is too thin (because of the Wholesaler taking his/her cut).