Evaluate my Deal!

[Nino Alfano]

Offer Accepted finally. Closing date un sure (feb 1st?$

The House:

• 2/1 889SQ Full Walkout Basement Plus Finished Attic. Detached Single Car Garage. 

The Numbers:

• Listed Price: 129,900$
• Purchase Price: 119,500$ (7 counters later!) 
• Retail Rehab: 32k 
• Estimated Rehab: 26k (My Cost) 
• After Repair Value: 220-240k (Shooting for highside with finishes) B+ neighborhood 
• Rent: 2,200$ (2 blocks from university) 
• Taxes: 3,850$ (320$ monthly
• Loan Type: FHA 203k Nonstreamline (Self Help) 
• Closing Costs: 7,800$ (Not sure where those numbers are coming from? 3.5%- 4,375$ down plus 1.75% -2,187$ MIP plus closing 1,237$ Guess?) 
• Estimated Holding Costs: 4,400$ (3 months rehab 1 month sale PITI+Utilities 1,100$)
• Selling costs 3% 7,200$

Scope Of Work 

• New flooring Hardwood(Herringbone Pattern) 1st floor 2,000
• New Kitchen 6,500
• New Bathroom 1,500
• Paint Interior/Exterior (Loan)
• Add Crown/Trim 1,000
• New Windows (Loan)
• New Doors 1,000
• Add Dormers in Attic (120 Sq gained) 2,500
• Finish Basement 5,000
• Add bathroom in basement 3,500
• Tuck Point Exterior 1,500
• Pavers over concrete patio 2,000(optional)
• Pacers over front walk 500(optional) 
• New Concrete Driveway 2,500$(optional) 
• Side Garage 1,500

- The house after Rehab will be 3/2 1009sq -

I Am utilizing the FHA 203k loan. Purchase price 119,500 will be replacing windows/paint/adding GFI in kitchen/bathroom with the loan. This will be 4,500$ on top of the Prichard price 124,000 total loan amount. 

I am the approved contractor. They are only giving me Material cost not labor. 

If I missed anything let me know and I am not sure if I am going to Flip after the 90days (FHA requirement to get more than 120% of purchase price) or cash out refi in 6 months and rent property or HELOC. 

I guess it depends on credit.

This property was acquired from the MLS

What would you do on this project ?

If all estimates are correct what is my projected profit on a flip and monthly revenue ? 

Advice appreciated 

[Justin Spaulding]

So many ways to skin a cat. I would flip it, invest in a 4 unit or greater and rent that.  What I am looking at doing as using single family houses as flips...I've seen the power of having multiple units under one roof. Flip and take proceeds to make multi-family purchase and repeat. This will be your quickest way to build wealth!!....in my opinion. Great work!