All Forum Posts by: Michael Brown

@Jessie Huffey Can I make an offer with the $80,700 flip budget, so roughly, an $89,000 offer, or 68% of asking, with an inspection contingency, and then if the inspector says, "Yeah this place is a plumbing, electrical, foundation nightmare," can I then lower my offer to something like the 40K offer, or am I stuck with the 89K offer because, the property is, "Sold as is"? 

@Jessie Huffey Thank you for your advice! Yeah the list price is 129K, but you never offer the list price! Every podcast I have heard, has said, "if you are not embarrassed by the offer, then it is not low enough!" 

I also did not account for taxes, you are right. I did account for 6 months of holding costs though. I also would be content with making any amount of profit just to get a first flip in my (bigger) pocket and prove to myself and potential investors that I can do this. I also like I mentioned inflated the hell out of every rehab expense. I think a more realistic rehab budget would be something like 85K ($25/sq/ft * 1614sq/ft = $40,350 and then double that for a conservative first flip = $80,700), but I just wanted to be SUPER-ultra-insanely conservative. 

Hi BP!

I am currently looking at a potential house in Marlborough, MA for my first flip opportunity! It is a house built back in 1890!!!. My question is the following:

Can you guys check out a FLIP Calculator Analysis I put together (below) and let me know your thoughts? I have not been in the house yet (the open house is tomorrow 1/7/17 and 1/8/17, but I literally went through every cost in J Scotts book on Rehab Costs and assumed the worst. I was hoping to get insight/expertise from people who have flipped houses. I don't have Comp 1, Comp 2, Comp 3) that I felt were most similar (using J Scotts comp. technique). I know I didn't use sales within the last 6 months for Comp 1 and 2, but Comp 1 is literally on the same exact street (which is key because the street is just off a busy street with a bunch of businesses). It sold for $270,000 a couple years ago, and is currently worth 340K. Anyways see the "Analysis" below, and let me know what you guys think!

Here is the Zillow link to the house: House

and here is the analysis link: Analysis

Thank you guys!

Michael A. Brown, CPA

Hi BP!

I am currently looking at a potential house in Marlborough, MA for my first flip opportunity! It is a house built back in 1890!!!. My question is the following:

Can you guys check out a FLIP Calculator Analysis I put together (below) and let me know your thoughts? I have not been in the house yet (the open house is tomorrow 1/7/17 and 1/8/17, but I literally went through every cost in J Scotts book on Rehab Costs and assumed the worst. I was hoping to get insight/expertise from people who have flipped houses. I don't have MLS access so I came up with a super conservative ARV based on 3 houses (on Zillow: Comp 1, Comp 2, Comp 3) that I felt were most similar (using J Scotts comp. technique). I know I didn't use sales within the last 6 months for Comp 1 and 2, but Comp 1 is literally on the same exact street (which is key because the street is just off a busy street with a bunch of businesses). It sold for $270,000 a couple years ago, and is currently worth 340K. Anyways see the "Analysis" below, and let me know what you guys think!

Here is the Zillow link to the house: House

and here is the analysis link: Analysis

Thank you guys!

Michael A. Brown, CPA

...the link is above in the first post: "DEAL"!

I just went and drove by the property. It's on a street directly behind a main road with a bunch of businesses (helps explain the LOW price). Would end up offering way lower than the asking price for that reason alone. Not excited about this deal anymore.

"Short sale,home being sold as is. The home needs an interior rehab.Purchase with a 203k renovation loan. There will be no showings until the open house on Saturday, January 7, 2017. Offers should not be submitted until after the open house on Sunday, January 8, 2017. Please make offers valid until Tuesday, January 10, 2017."

Lydia S. It says that it's a short sale.