First Flip Look at my numbers

[Chris Syrett]

Hello Everyone,

A work friend of mine is selling his slum rental in Tennessee. It is in a good part of town but over the years he just always put the minimum repairs into the property. I am looking to flip it. He is asking 35k for it. It needs 40k-50k of rehab work. My realtor says she can sell it for 125k or more depending on my upgrades. I also looked at the comps and I believe I could sell it for 125k. I know there are a lot of little numbers in the equation also, so I am looking for any feedback and questions. I am at that point that I have read and read and analyzed and I need to take action if this is the right one.

Thanks!

[David Robertson]

Based upon the 70% Rule, the numbers appear to work assuming your ARV and repair cost estimate are correct.

$125k ARV * 70% = $87,500 Before Repairs Value

$87,500 - $50,000 in Repairs = $37,500 Offer Price