Deal or Flop?

Question

Hi guys,

I have my first potential flip under contract and I'm in the process of procuring financing for it.  Can you please look it over and let me know if it's a good deal?

Thanks,

Ariel

https://www.biggerpockets.com/calculators/shared/439722/889901b9-51a1-4d98-84d7-b3a7d5d5a562

Ariel Deleon · Answer

I have a contractor bid for the rehab numbers.

I put the ARV slightly higher than the 2 sold comps @ 75k due to the area it's in per my realtor that I'm working with.  I've lowered it to 75k now on the analysis sheet to be more accurate.

Ariel Deleon · Answer

Thanks Jon,

I appreciate the input!

Jon Behlke · Answer

@Ariel Deleon

Thanks for sharing more information.  After looking at more information, I would say it's a great way to get started.  Be prepared for cost overruns and unforeseen issues, but I still think you'll turn a decent profit on the project.

Ariel Deleon · Answer

Hi Eddie,

Which program are you referring to?  I used the BiggerPockets flipping calculator to create that analysis sheet.

Thanks,

Ariel

Scott Harper · Answer

i cant say yes or no due to not knowing more info but with what i see and age of the house i would build in additional 5 k for hiddens and see if profit would still be good for you.

Jon Behlke · Answer

At first blush, the ARV looks a bit high to me, looking at the comps.  There's not a single listing that sold for what you estimate as the ARV.

It's hard to estimate the accuracy of your rehab expenses without knowing what's being done.  What are you doing and where did you get the numbers?

Jeff Copeland · Answer

Roof, Electrical, Foundation, and Exterior Painting costs seem low at a glance...but of course I have no idea what repairs the budget is for.

Otherwise, numbers look good if ARV is accurate.

Ariel Deleon · Answer

Comps are here:

http://matrixweb.trendmls.com/Matrix/Public/Portal...