Updated 2 days ago on . Most recent reply
First Foreclosure Deal Analysis
Looking to do a fix and flip. While this is not my first time managing a major renovation, this one appears to be the most extensive one yet. Home is from 1960's in a solid neighborhood. I used to live in this neighborhood just a few years ago. The big ticket items that I see are that the floors are "springy". Anticipate joist issues and possible termites. Both bathrooms are total gut jobs. There is a huge hole under this plywood. Kitchen needs gutting and opening to other spaces. Paint and about 30% of floor finish replacement. Backyard has an old and possibly unusable swimming pool. Driveway needs to be replaced.
My past experience includes my first house in 1996. Purchased from a REI friend that was going to have to rehab house after bad tenants. Assumed his loan and did all repairs by myself with help of my dad. Yes, I even roofed it with my dad.
Second house (2001) was purchased by my husband and myself. It needed extensive updates and had water issues. Some work done by me but GC'd the rest.
Current house (2021), added an ADU above the garage. It has been consistently rented as a fully furnished unit for nearly 4 years. It could easily pay our mortgage payment.
I am still looking at funding/investors. I have priced a bridge loan with several providers, but that would eat into profits significantly. I do have and Equity Trust Real Estate LLC but could use a partner to work the deal.
BP calculator done using rate sheet from best current loan offer.https://www.biggerpockets.com/analysis/flips/65402a1f-e516-4...