The house is 1,400 SF a 3/1 in capital view. Purchase price is 130k needs about 80k in rehab including a 200-300 SF addition and adding a bath. The ARV is 265k. Thoughts???
You are looking at very best a 45K return. Assuming you could do it in under 2 months it would be doable as long as it does not interfere with doing more profitable flips.
@Timothy Greene The most I would pay for that deal would be around $100K.
I like this one better than the last. There is generally a better spread in Capitol View than East Atlanta, since it's still coming up.
Can the bathroom be added without an addition? If so, you can save substantially on permitting, holding costs, and general headache.
How did you source this deal? MLS, off-market? It would influence the negotiation strategy and how to work backwards into your expected return.
What's your experience with this kind of flip? Generally speaking, getting a contractor you can trust and rely on is an ongoing hassle. If you're doing a more cosmetic flip and avoid major rehab and additions, you can do your own subcontracting and project management, avoid major permits and associated fees, and probably improve your margin, at least until you get more experience and better GC connections.
I'm just working on my 4th and 5th projects now. So I've got more "academic" experience than hands on. Obviously, your mileage may vary based on your own experience and competencies.
@Timothy Greene I would pass on this deal unless you could negotiate the purchase price down to $105,000, then I would probably still pass. There are plenty of deals to be had that can provide just as much profit without having to add square footage or baths.
This post has been removed.
@Timothy Greene Why would a Networth Realty Agent, a high volume wholesaler, ask for investing advice? If you mean to sell the property, why not just post it in the Marketplace?
Your ARV and rehab costs are best case. Purchase price is $30k+ on the high side depending on the street and house. Keep us informed as to what you do and your numbers. It would be great to see Networth eat their own dog food and show us how it's done.
I appreciate your feedback. I like to get a feel of what investors are looking for numbers wise before I purchase a property. It is interesting you say the ARV is best case as there is a comp a street over with 1600SF that went for $287,500. So I would have to say that this ARV is on the conservative side. But I do appreciate all feedback, best of luck to you.
@Timothy Greene Post your comps and I'll help you understand why it's best case.
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing