List price is $125k. It's a short sale and new to the market. Listing agent thinks bank will accept $85k. It needs $6k of work. ARV is $125k-$130k.
My investment would be $95.5k ($85k price + $6k reno + $3.5k closing costs + $1k holding cost).
Net at close would be $115k ($125k ARV - $10k selling costs).
Profit = $19.5k
Thoughts? I have a bunch of rentals but this would be my first flip.
If the agent truly thinks the bank will take $85k, listing it at $125k would be pointless.
I just bought another one from this same agent with the same strategy. It was listed at $55k and my offer was accepted at $37k. $5k of reno and the appraisal came in at $56k which i think is pretty close to the ARV. I'm keeping that as a rental though.
Not sure why he's listing at $125k. It does seem pointless. But at a purchase price of $85k with the above numbers what do you think?
seems like a no brainer to me..
Timeline of the flip?
I'll make the offer today. If accepted it will close mid-July. Repairs will be done end of August then it will go on the market. Should sell October/November.
That's over a 20% ROI. Done deal. If you need some comfort in your purchase determine if it pencils as a rental so you have a back up plan. There's no speculation if it pencils.
As a rental it would cash flow $150-$200/mo including generous repair reserves. I'm going to make the offer. Thanks for the feedback.
Hard to believe... Why aren't others jumping all over it? Is it a buyers market of where u are at? I'm in Grand Rapids mi and the supply is so low by the time the listing hits mls it's pending... Ahhhh!
Anyone else have these issues in bigger cities?
Even I was thinking about that. I don't understand what's with 125K list. Jeremy please let us know the further proceedings about this deal k. So how is your reno going. Anyways best of luck for the flip. This link might be help for you: http://livefromthemoon.tv/5-renovations-will-add-value-home/
Recently read, thought would be helpful at some point.
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