Updated over 7 years ago on . Most recent reply
Help me a analyze this deal in Baltimore
I just purchased my first flip from foreclosure auction. It's in 166× Argonne drive, hillen neighborhood. I bought the property for $70k, I'm expecting a $40k rehab costs. But I'm out of state and scared that my contractor might screw me up. Now I couldn't decide if I sell it as-is to another investor or flip it. I don't know what to expect in my first flip if I decide to flip it
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@Khelifa Ahmed - what makes you scared your contractor is going to rip you off? Have you had more than one bid?
I live close enough to your property that I could walk to it. Also, I've had contractors bid on rehabs on properties in the area and for a retail flip I think you will have a tough time getting that done for $40k, unless the home already has central air and a the proper wiring to support it. Not going to say it's impossible though. I would expect a rehab in that area to be closer to $60k, possibly more. Just letting you know so if you get quotes around $60k, they are probably legit. Your ARVs are going to be $165k easy with a few going around $190k on the very high side (those tend to be end units with 1500 sf, 4th bed in finished basement, with at least 2 full baths).
I've been in your shoes before and have been able to unload deals to other investors, so if you go that route I could give you some names of buyers. When do you close?