Flip House in Texas

[John Claborn]

Hey everyone. There's no greater group of analysts in my opinion than bigger pockets members. Here's an extremely nutshelled analysis of a deal my investment company is doing. The market is Lubbock, TX. We purchased a property for $80k with a tax appraisal of $129k. After renos and based on comps in the neighborhood, we're projecting resale around $62-$63/ft. Square footage came in at 2,400 roughly. E estimate $30k in Reno costs. My question is what are some tactics we can use in order to $30k of profits on this deal. We're getting bids than have ranged from 20k-35k on renos. Originally our realtor told us 2,700 on square footage. Essentially, we went from a great deal to a good deal. What are your thoughts based on this very limited information I've provided. If you want to discuss personally in more detail, just DM me. JC

[Greg H.]

Never ever buy a property based on its tax value. In Texas, the tax value has zero to do with what the property is actually worth. I have bought proof for $50000 with a tax appraisal of $20000 as well as properties for $20000 with an appraisal value of $50000 and the the first one was a better deal

Before moving forward, you need to get with your agent to get some MLS comps together as to what your property is worth as-is and what the ARV(After repaired value) will be. Once you are confident with the numbers you can work on a budget for the Reno

Feel free to reach out if you need any help as I have Lubbock MLS access