I'm in the decision stage about my first flip and I'd like to get an outside opinion on it.
It's a 3BR+1BA
Here are the numbers:
Potential Rent: 1,000
It's a cash deal. Perhaps I'll do a refi incase I would like to do a BRRRR instead of a straight forward flip
What are your thoughts? are the margins look good? I've rounded the numbers up to be conservative. and rounded the ARV down.
Would love to get you take
@Tomer Shani - You are essentially into the property for $80k and it will be worth $100k. If this is a property you are holding, it seems pretty good as you created $20k in extra net worth. The BRRRR method would work great here as you could easily get a cash out loan for around 70-75% LTV. You would get almost all your cash back, and could go do another deal like this.
If this was purely a flip, and you planned to sell, it would be a tight deal, but still not bad. If it sold for $100k, you would have selling costs of 5-8%, plus you might have to spend money on staging. So you would be left with around $10-15k profit if it all went as planned.
Let us know how the deal works out!
Thanks @Andrew Kerr
What do you think would make this deal better?
I would not go over 75k total cash.
Also, will I be able to do a rifi? I don't have a job right now.
@Tomer Shani it might be tough to get conventional financing without a job. You can just wait till you get a job again. Or you can look at a private lender or portfolio lender.
Are you looking to hold this property or resell?
I want to try and sell it first. That is my plan A. Plan B would be to rent and do a cashout refi.
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