Written Purchase Agreement Secured!

This is a simple update that the bank signed the purchase agreement. The terms of the agreement are:

• $129,863 Purchase Price
• 3% to Purchase Closing Costs
• $2,500 in additional Purchase Closing Costs
• Closing Date of 11/25 (which is Black Friday, so it will probably be earlier

Now, the anticipated ARV and Scope of Work for the rehab:

• Holding Time = November - February (4 months)
• Rehab Time December - January/early February
• Estimated Holding Costs = $5,000
• Firm Rehab Estimate from GC = $43,500
• Estimated Sale Closing Costs = $14,500 (RE Agents, Title, etc.) + $3,000 in Seller's Assistance
• Estimated ARV = $225,000
• Expected Profit, Pre-Taxes = $26,637

For my first flip and gaining necessary experience for future flips, I believe this is an acceptable profit margin and will enable me to build a resume of experience to find additional funding options so that I can possibly do more projects simultaneously in the future.

I will be meeting with a CPA so that I can finalize details regarding capital gains taxes, small-business taxes, and others.