Deal or No Deal??
OK this post is more out of frustration of our local and I guess my inexperience (only a couple flips under my belt) than anything but I would like some help with the analysis..
I got a tip from a friend that knows a couple that had a property in a nearby town that they intended to flip (but never finished). He got a big promotion and has to move the family out of state ASAP, so they need to dump the house. Its structurally sound and stripped down to the studs. I called them up and they said they would let it go for $6,500!
I'm thinking home run until I ran the comps.
First- The market is still terribly stagnant in our rural area. Comps 65K-100K (None completely remodeled)
Numbers
1600 Sq/ft 3-2
Purchase- 6.5K
Remodel- 60K
Additional- 9.5K
TOTAL- 74.5K
At this price I would need to get at least 100K for it which is at the top of the comps. It is extremely frustrating to be able to find a deal like this and still not be able to feel confident in the flip. What do you guys think?
Thanks
Rob