Possible First Investment
I'm very knew to the REI world. As in, I started really considering it yesterday, but I quite possibly could have my first deal. My predicament is whether I'm jumping in too soon, or should I go for it because of how good the opportunity is.
My dad plans to move from Mandeville, LA to Lake Charles, LA. He wants to sell his house which is about 70% renovated. He has three liens on the property. One is the mortgage two are judgments. Therefore, he wants to just sell the house for what's left in the mortgage and let the other two judgments follow him. He also wants a new vehicle out of the deal. Here are the numbers on the property:
Mortgage: $95,000
Vehicle: $20,000-$30,000
Home size: 2800 sq ft
Avg comps: $110/sq ft
Reno Cost: $40,000-$75,000
ARV: 65%
LTV: 65%
Profit Potential: $80,000-$110,000
The comps and reno cost have been verified via home builders and real estate agents who have walked through the house. This opportunity seems way too good to pass up, but I'm worried I don't have enough knowledge to pull it off. I'll leave it to the community to give me their thoughts.