Does this sound decent?
I have some very brief numbers (will be getting more info soon), but would you do this deal?
There is a particular home for sale for 29K in a gentrifying neighborhood. Located in the city near amenties, but not in the most expensive neighborhood. Comparable homes (actually the only homes on this street) are selling for 100-119K. The house looks great on the outside and probably just needs cosmetic work inside.
It has very low taxes and very low carrying costs. We think we can make some good investments on the inside for well under 20K (but for emergency room, we've set the budget at 20K).
Based on those numbers, what do you think? Even though we'd try to work as quickly and inexpensively as possible, for whatever reason the house didn't sell, we wouldn't be in too much of a financial pinch if we had to carry the costs until it sold.
29K list price (we'd negotiate)
+ 20K budget
= 49K
list at 100K (thats on the low end)
51,000 profit
(not sure about closing costs, so I didn't add that in)