Help Me WIth This Deal

[Dennis Pressey Jr]

Hey everybody, thanks in advance.

Here is the short story. Home is under contract for $125,000. During the inspections, it was reveal there is a unsatisfactory septic system. It was poorly taken care of and is totally maxed in capacity, soil can no longer drain property due to deposits. (For others that may have septic issues).

The septic repair in my area is going to be $22,000. So....

Here are the PRE SEPTIC numbers:

$280,000 ARV

$125,000 BUY
 $65,000 REHAB
 $30,000 CLOSING/HOLDING
_________
$220,000 INVESTED @ 78% ITV

If we add the $22,000 for the septic, we still make money however our margins get very tight % wise. The $280,000 ARV is a solid, QUICK SALE price. We expect to list this at $315,000.

Thoughts!?