Evaluate my Deal!

Evaluate my Deal!

Nino AlfanoPro Member
Contractor · Lemont, IL · Member since 2015 · 335 posts · 76 votes

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 

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Real Estate Investor · Milton, WI · Member since 2015 · 52 posts · 14 votes
10y

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!

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  • Investor · Fort Walton Beach, FL · Member since 2015 · 568 posts · 966 votes
    10y

    @Nino Alfano Yes, either refinance and or do a HELOC to tap into the equity while living in the property and rehabbing others. At the 2 year mark, you can then sell and not be taxed on your profits. Happy New Year!

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