Just closed on a property for $589,000 that's bank owned. been sitting on market for about a year. Upon first review with GC, systems look okay and we ranked the renovations required as Advanced Cosmetic category (J Scott).
- All walls need re-painting
- Re-do kitchen including countertop island
- Some basement finishes
- New appliances
- Sanding some floors
- Miscellaneous work
Since it's a very short closing, I've scheduled Home Inspector, Septic Inspection/Cleaning, Water Well Inspector, Roof Inspector all for tomorrow. There's an old pool at the property too and i'm planning on scheduling someone to take a look at that.
Is there anything you think I'm missing here? Is there anything that you think is unnecessary?
My numbers are as follows:
After Repair Value: $750,000
$589,000 for purchase
$7,500 inspection and buying closing costs
$50,000 renovation costs
$10,000 holding costs (mortgage + taxes will be $2,250 per month)
$37,500 broker sale commission
$5,000 closing costs at sale
$10,000 miscellaneous costs
Net Profit: $41,000
Any advice? Anything major I'm missing? Don't be shy! I need constructive feedback from you vets :)