REO Condo

3 Replies

I am considering a condo for a flip here in the DFW area. Just wanted to get some thoughts on the property. It is a 980 sq foot 2/2 condo that was built in 2004. The condo needs some major painting, and a few renovations in the kitchen but nothing extreme throughout the condo. I would like to see if I could get any thoughts on the ARV. It was sold in 2004 for 82k and i could get the property for around 50-52k. Rehabs will cost around 5-7k. The issue is it is difficult to run comps for the property. Only a few other condos next to it and it is located right next to a neighborhood. The homes in the neighborhood were built in the 1960's.... so nothing fancy but the homes are well maintained. The property is appraised around 65,000 so I am wondering how to get a precise ARV on this condo. Any thoughts would be greatly appreciated. Thanks.

Doesn't sound like much room for profit. Don't forget the HOA holding cost.

I bought a couple condos at a trustee auction and had to pay some back HOA fees. Keep that in mind also...

- What it sold for in 2004 is completely irrelevant.

- I would not use the appraisal as an ARV. That could easily be an unrealistic maximum dream price.

- If you can't get sold comps within the same complex, then this is a very risky deal.  (You might have better luck at the casino.)

- You need a solid ARV and a solid REPAIR COSTS: i.e. ARV * 70% - Repairs

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