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Rehabbing & House Flipping

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Rhianna Raslan
  • Charlottesville, VA
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My First Potential Flip

Rhianna Raslan
  • Charlottesville, VA
Posted Oct 29 2016, 01:08

I am getting ready to put an offer in on my first flip! Any feedback is very much appreciated. It is a 2 bedroom 1.5 bath condo located in Annadale, Virginia. I will be using a hard money lender only to acquire the property. I will fund the rehab and holding costs myself.

Purchase price: 140,000 (this is what I am going to offer. It's listed on MLS for more)
Rehab: 25,000
HOA: 1,500
Insurance: 700
REA:13,200
Inspection: 400
Closing costs: 2500
Hard Money Lender: 8,200 total 
Utilities/trash/tax: 1500
Total expenses: 53,100 + 140,000 purchase price = breakeven is 193,100
ARV: 220,000ish
Potential ROI = 26,900

I am looking at a 3 month timeline: 2 months for the rehab and 1 to sell. The condo is 1011 sq feet and needs a cosmetic rehab (paint, fixtures, kitchen/bath update, etc). No knocking down walls or anything major will be done. I am hoping it will take less time to finish but wanted to play it safe with my numbers.  I built 5,000 for anything unexpected into the rehab budget. 

Comps in the same complex are selling for 210,000 - 225,000, some aren't even updated. They have been selling in less than 20 days. Some even sold in less than a week.

I will make the offer today and if it is accepted I will have an inspection and a contractor estimate the rehab to make sure I am not far off. I am offering significantly less than the listing price so fingers are crossed!

Does anyone see anything wrong with my numbers? Any expenses I left out?

Thanks in advance for your expertise!

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