Keep Me Honest ! Wholesale or Fix and Flip?

Question

Hello. I'm relatively new to the wholesaling/flipping opportunity and am looking for some opinions. I currently have a possible flip opportunity. The ARV of this 2544SF house is $349,000 (based on recent sales on the street at $137/ft). Zillow estimate is $330,000. The house needs anywhere from $40-50k in repairs and upgrades. The seller wants to walk away with $250,000 net to him. That leaves about a $45,000 profit before closing costs. Would this deal be attractive for a wholesaler? Would this be an attractive fix and flip opportunity? ANything ese I am missing? Currently working on my education but time is of the essence on this deal. Thanks so much for your feedback.

Eric James · Answer

Based on those numbers, I don't see that deal being attractive to flipper.  Except, maybe one of the newbies who will overpay because they just saw their favorite HGTV star 'make a killing'.  This type of property is an example of why I got my RE license, so I can have the additional option of offering to list the property for sale for the owner.

Aaron K. · Answer

You are missing the $17,500-$21,000 needed to sell the property via a realtor as well as any holding costs incurred so your $45k profit went to $24k.  This is assuming that by "walk away with" the seller means a total price and not what they want after they pay off their loan.  Depending on the area this probably isn't great unless you are in a super high demand market.