Real Estate Agent · Los Angeles, CA · Member since 2017 · 6 posts · 1 vote
New investor with less than 5 deals done so far
Just secured a partnership deal with seller for abandoned home in South Central Los Angeles. 1,382 sqft Home, 4,052 Lot (Fire Damaged and Current Lien of $150,000)
Sold Comparables show ~$290,000 - $315,000
How do you fully calculate renovation cost - is this property better off a wholesale for more advanced investors?
wholesale take 70% of ARV less repairs less wholesale fee. I would get an engineer to confirm the extent of the damage and get several contractor estimates. This could be a small amount of repair or it could be very BIG.
Use the same formula to flip and you will pat yourself on the back.
@Emmanuel N Njoku Congrats on securing the relationship with the seller. I have a couple contractors who would be interested in helping you get a bid, in favor of the job. Please PM for contact information. Best of luck!