Deal or No deal? help doubling checking numbers on fix/flip.
Hi all!
I looking for some advice and help double checking my numbers for a fix and flip in the Asheville, NC area. Want to have a solid MAO, then start offer below to begin negoiations. Also- any ideas on structuring the offer to look more favorable without straight all-cash offer?
ARV- 180k conservatively @ $153 p.SQFT (based off realtor, and ran average price p.sqft for last 90days within1 mile, like house type bed/bath, +/- 20% Sqft) Closer to 158p.sqft
SqFT- 1200
Fixed costs - 35k (super high as needing to use HML, can be adjusted some based off cash for down payment to offset amount through HML)
Rehab $- 30k (will be getting back in property tomorrow to double check for major issue, to the best possible ability) needs near full rehab. (roof- composition shingle on ranch, a/c heatpump needs to be installed with current duct work from furance, 1.5 jack and jill bath, kitchen, 2 bedrooms , its defiantly outdated! carpet, paint, fixtures, lighting, spruce up yard, wood siding= powerwash?)
Profit 20k (wanting at least 20k, if ARV is higher, then more profit, but running lower ARV)
180-35-30-20=95k or 180*.7-30=96k MAO(?)
Asking 125k.. although they have reduced price already. How can I make my offer more attractive, yes HML can close quick(er) but still viewed as "financing" vs. "cash" correct? We can do 30k down, then HML on 70k vs. 65% ARV (117k) then 30k our cash for rehab. This ties up our cash and is intimidating for first fix/flip! I guess the plus of working with HML is they double check ARV...
The HML is not ideal, but if it makes the deal go through at the right offer, then I will take the risk!
Do I have too much buffer in my numbers, not enough? Please share your thoughts. ANY and ALL advice is appreciated!
THANK VERY MUCH in advance... I don't know what I would do without the BP community!