I just wanted to share my progress and open up discussions for advice and questions. I made the commitment in July of this year to get started in the real estate game. For 3 months I have been studying and saving money so I can start taking action.
Fast forward, I have been driving for dollars, visiting the county courthouse for probates and delinquent tax leads. I visited 2 properties that were fsbo but I didn't have a good feeling about the properties. I sent out my first round of letters a week ago to my probate leads, 97 letters went out, thursday they hit and thursday I got 2 calls. One of those calls I will be visiting tomorrow to put in a offer.
The guy flipped houses in the past and doesn't really have the time to flip the house himself. He says the property only needs paint and carpet (we'll see about that tomorrow). But he said him and his brother are ok with selling it at a discount. Its not currently on the market due to the paint and carpet issue. If cosmetics is all it needs i'm thinking this might be a slam dunk.
Heres the estimated numbers if what he says is true:
Rehabers Purchase Price: $267,000
Closing Costs: $18,500
Agent Fees: $25,500
Holding Costs: $4200
Wholesale Fee: $9,800
This is based on a 6 month holding cost, which the comps are selling in a couple 45-90 days. The repair cost are worse case scenario with paint and carpet. Let me know what you think!
Great job and best of luck. Just make sure to do your own thorough inspection and not take anything the seller says as fact. It is possible that the previous flipper bought the property thinking it was only paint and carpet need but ran into a slew other issues preventing a profitable flip.
As noted this sounds fishy. Flipper likely found hidden major issues after purchase and is looking to pass them along.
@Thomas S. The guys doesn’t flip houses anymore, it was his moms house that passed away. I will definitely do my due diligence on the repairs though. Thanks!
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