Small profit flip - looking for feedback
This will be my first "quick flip", and my initial thought is that there's not enough profit to justify it many times... but just to get my feet wet, I'm going for it.
I'll apologize in advance for not knowing the proper lingo, abbreviations, acronyms, or even the right way to describe a deal... like I said, I'm new here :D
The house is owned by an acquaintance of a friend, and the friend happens to be a realtor who is killing it in my market. His opinion is that the house should be on the market for no more than 6 weeks before sold as-is for about 120k.
The neighborhood supports houses no higher than upper 130s.
We have a verbal acceptance on ~85k, and after talking to my GC I don't think we're at risk for anything more than 10k before the house would be sold at a minimum of $120,000.
We will split the costs, and the profits. If it's actually listed on the MLS, he would get a commission so we will adjust the proceeds to ensure we both come out 50/50.
$85,000 purchase
$10,000 repairs
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$95,000 invested (47,500 each)
$120,000 sale
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$25,000 profit / 2 = 12,500 each
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There is no guaranteed sale, and we both know that. In my opinion, it's a lot of cash to tie up for not a huge return, but being new at this game... I'm hoping to get some expert and experienced feedback.
TIA :)