Fix and flip cost-profit question
I am a wholesaler In the springfield MA area trying to figure out if a deal is worth it/ if anyone is going to buy the contract due to a lot of work on the property to get to ARV. It’s buy for 60k, 40k rehab costs, and ARV 150k. So the question is this... what typically does a rehabber look for in terms of relating cost of repair to profit. this house is 50k profit... just so I know what to sell the house for and stop wasting peoples time.
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$60k purchase and $40k rehab on a $150k ARV property does not leave the investor with $50k profit. What about closing costs on both the purchase and the sale? Holding costs during the rehab? Realtor/broker commissions to sell? That "$50k in profit" quickly gets diminished when you analyze a deal and run the numbers properly.