Updated about 9 years ago on . Most recent reply
Been asked to participate in a flip
Have just been approached about participating in a flip, and I've never done one. The other party has done several, and their track record for profitability is good. However, it's outside of what I know, I would appreciate some advice.
Looks to be a ranch with a basement, three beds, 2 1/2 baths. Square footage is 2000+. We are looking at a purchase price of about $145,000, with $30,000 in renovations. ARV would be between $215,000 and $220,000.
If I look at it with that information, it doesn't fit the 70% rule. However, it should sell in that range, which would mean a profit to each of us of about $20,000. Worst case scenario I'll, if it needed to be rented, we could expect to rent it for $1200 a month. What might be missing?