Enough estimated profit on this flip?
I'm looking at a potential flip. Is there enough potential profit to do this deal? It doesn't quite satisfy the 70% rule, but I'm being pretty generous with my repair costs I think (given the market and the property size). And this would be my first flip, so frankly, I'd consider breaking even a success for the sake of the learning experience.
The details are as follows:
$150k purchase price
$69k for rehab and holding costs
$20k admin/purchase/sale costs
$280k ARV (based off a nearly identical house recently flipped around the corner)
$40k desired net profit
This is what I have for rehab costs:
| Paint | $5,000 |
| Flooring | $5,000 |
| Landscaping | $1,500 |
| Kitchen | $20,000 |
| Bathroom | $10,000 |
| Roofing | $5,000 |
| Trash Out | $1,000 |
| Drywall Repair | $3,000 |
| Basement | $10,000 |
| Heat Pump/A/C | $4,000 |