Help with a potential deal
Hey everyone. So today I stumbled upon my first potential deal. It is a single family home and I feel as if it has potential as a flip. It is an unlisted property that the owner is looking to get out. It needs some work but nothing serious. My question is what would you recommend for a first timer just go all in and try and get financing for the flip or just wholesale it to get practice and make some money now. I believe it would take about 25k to fix it up I think it will be worth about 350k when rehabbed and could be purchased for around 270k What do you guys think?
Most Popular Reply
Personally, this sounds like a thin deal for someone without experience -- both as a flip and a wholesale.
Assuming fixed costs of 10% of ARV (reasonable minimum for a cash deal in most areas), then you're potential profit is $350K - $35K - $25K - $270K = $20K.
A $20K profit on a $350K ARV is very thin for an inexperienced investor.
Additionally, given that there's not enough room for you to make this a good deal for yourself, there's almost certainly not enough room for this to be a good deal for someone else.