First Flip
Bought a 3/1 REO in a nice neighborhood in rural Maine. The market is currently enjoying an absorption rate of 3.5 months for properties in the targeted price range. (We are targeting four area codes in a growing area enjoying growth activity around military installations and other industry.)
The details. Purchased with cash for $42k. Estimated rehab budget of $19000, and holding costs of $250/mo. Rehab should take 4-5 weeks. Similar properties are selling at $100k. We obtained a great inspector who validated the property condition and needed repairs.
We're adding a half bath upstairs in addition to general rehab of plumbing, electrical, countertops, and landscaping. Refinishing cabinets, floors, and replacing most electrical fixtures. We have a SOW, a firm budget, and project calendar.
We have contracted a cadre of licensed tradesmen we know personally, and have hired a PT carpenter to perform much of the non-licensed work.
Our ARV for this 3/2 should be approximately $110,000 as suggested by our Realtor. We close tomorrow, and we expect to be relisting the property after the July 4 holiday.
What do you think?
Most Popular Reply
Good deal! I'm working to close my first resell..Your numbers better, but I'm starting in the 70K range ...I'm focusing more attention in kitchen/bath..I'm also including stainless package(stove, microwave, dishwasher)... Since all my rehabbed projects include rentals/owner financing, resell is a new arena...Working to diversify....Good luck!