Property purchase of $53,000, ARV $234,000. Estimated repairs $110,000 7 months holding.
Yes if the numbers are correct and it's in an area with comparable homes. Also how accurate is your ARV and Reno costs
Thank you for responding Chris,
ARV is pretty accurate, Reno cost not so much, best guesstimate. I am considering a 203K loan. I think it will help to make Reno costs more accurate.
Should consider BRRRR strategy if you haven't done so. Seems like a good project to do but definitely get a clear estimate from a trusted contractor.
Best of luck !
Depends on how much it can rent for, it looks expensive for brrrr
Of course, with those numbers, it's a great deal for a flip. I have a couple questions though that might help. do you have the cash to do everything... plus a good 10-20% reserve? Using hard money or even private money might make this a very bad deal.... you'd have to factor that in. Rehab loan? If you can make this work, great. In my experience, these loans are harder to pull off than you might thing unless you are going to owner occupy.
Now, the biggest part.... who's going to do the work? I'm sure you've heard of investors having trouble finding contractors.... do you have one you can trust? I would get one contractor to look over the place and give you a decent quote.... then take that scope of work and have a second and third contractor look at it so that the quotes cover the same work. If you're doing the work yourself, then have fun.... just remember to have a proper reserve fund.
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