Help Analyzing a deal
Hello, BP family! I am new to posting on this forum however I've had the opportunity to read a lot of useful advice on here. I figured I give it a try for some sound advice.
I am looking at my first deal, naturally, I'm excited but I don't want that to fog up the logic in the numbers. What I would like to know is if this is a smart buy? What would you do in this scenario? should I buy and hold this home (BRRR) or flip and sell?
Breakdown of the deal:
This is for a Single-family home 3 bedroom 1 bath 836 sf living area. I am looking to convert to a 2 bedroom 2 bath.
purchased price: 47,900
Rehab cost: 38,000 estimated I personally believe 50k
Arv: 145,000
I pulled three comps in a mile radius of it.
comp 1: 2/1 940 sf 0.7 miles away sold on 05/13/20 150,00
comp 2: 2/1 964 sf 0.6 miles away sold on 3/12/20 162,000
comp 3: 1/1 876 sf 0.9 miles away sold 3/20/20 149,000
I am curious to know for a first project is this a smart buy or should I continue to search? I thank you for your advice in advance.