House is forclosed and listed for 105K
Charlotte NC Market
comps on renovated houses range from 131-155k
the 131k does not have a renovated kitchen or baths
thinkning of offering between 85-90K
I estimate $11k in repairs including new kitchen, updating the baths, new floors and paint.
Sell for 140-150k
It works with the 70%rule at 87k and i am paying cash for the house.
The cost of labor is me:). Since i am doing all the work and i would expect other flippers to hire out should i offer less?
I come from a construction background and understand what a fully renovated house needs to look like.
Thanks! I do have an extensive construction background. :) Im trying to weigh jumping in to get started or waiting for the absolute home run that i can make 100K on. I know guys that wont touch a flip without a minimum of 40k. Since thats what i make in a year..haha...sigh. I'm cool with working for a little less profit. Right now the numbers are around 33-43K if i exit where i want.
@Kyle Waggoner have you seen the house yet? $11k is very low on rehab costs, but if you re doing 100% of the work maybe it is possible. I assume the HVAC is all good to go, roof is good, windows are good, etc. If your market is hot like most, offer the most you're comfortable with.
😆I’m not totally crazy. I have crawled every inch of the house including crawl space and attic. HVAC is in good shape and windows are at most 5years old. Made a list of what needs the be done and priced materials. Yep I am doing all the work myself so it’s not going to be done in a week and I have some skilled friends I can call if I really get in a bind.
@Kyle Waggoner how long do you anticipate for rehab and to sell? Trying to see if you accounted for holding cost and commission on sale.
Great question! I am paying cash for the property and plan on holding it for two month during rehab. I calculated 6% commission on the sale. Since it’s foreclosure the bank pays the closing cost on the purchase.
Wow! Thanks Jason that was a killer breakdown. I will re-evaluate and move on if I have to😁. If the numbers don’t work No deal😬