All Forum Posts by: Rhianna Raslan

Just wanted to updated everyone and let you know that my offer was rejected. I don't feel comfortable paying any more than I offered so the search continues!

@Bill Hinshaw Thanks for the advice! I will definitely have a few contractors check it out. I think he was calculating it based in total risk as well.

@Matt Stewart I am hoping to have the condo finished in about 6 weeks and that would give me 6 weeks to sell. I did the math accounting for an additional month of the hard money loan and expenses and I am okay with that if it comes down to it. Not ideal though.

@Account Closed I didn't use the BP calculator. I'll check that out. I do not have construction knowledge but it is a 1 bedroom condo so there won't be any roof/structural issues. I am going to have an inspection done if my offer is accepted though. The property is not bank owned. I would not be disappointed with a 14% return on my first flip because the knowledge I will gain is invaluable to me. That being said, of course I will be pleased with bigger ROI.

I only compared comps that were condos of the same layout in the same complex. No SFHs. I appreciate the advice!

@Devin C It is very exciting! I hadn't heard of virtual staging but looked it up when I read your comment and I must day I'm not too fond of it either. I'm going to call some staging companies today and get quotes.

@George Despotopoulos Thanks! I will be sure to do that. I definitely want to get it all done in under 3 months.

@William Huston That staging is interesting. It doesn't look fake with the coverings. Thanks for sharing.

@Gaege Root I am excited and nervous, but mostly excited.

Thanks again for your feedback everyone. I am anxiously waiting to hear if my offer was accepted. I'll keep this thread updated!

@Brent Coombs I didn't know they used smaller furniture! Thanks for pointing that out. I'll keep it in mind.

@Brent Coombs I apologize, I didn't tag you in my reply. 

My selling costs were what I listed as REA and closing costs. I wasn't planning on staging it because none of the comps that sold were staged. Do you suggest I stage it anyway?  

I am expecting it to be owner occupied but an investor buying is a possibility.

I estimated the rehab budget at under 20,000 then increased it by 5,000 for safety. I won't know an exact number until I have a contractor walk through if my offer is accepted. I estimated $20 per square foot to get the 20,000. 

A few of these numbers are estimates I did after research such as the rehab, closing costs, utilities and insurance. I tried to over estimate to leave room in case I misjudged anything. 

I appreciate your feedback! 

I am getting ready to put an offer in on my first flip! Any feedback is very much appreciated. It is a 2 bedroom 1.5 bath condo located in Annadale, Virginia. I will be using a hard money lender only to acquire the property. I will fund the rehab and holding costs myself.

Purchase price: 140,000 (this is what I am going to offer. It's listed on MLS for more)
Rehab: 25,000
HOA: 1,500
Insurance: 700
REA:13,200
Inspection: 400
Closing costs: 2500
Hard Money Lender: 8,200 total 
Utilities/trash/tax: 1500
Total expenses: 53,100 + 140,000 purchase price = breakeven is 193,100
ARV: 220,000ish
Potential ROI = 26,900

I am looking at a 3 month timeline: 2 months for the rehab and 1 to sell. The condo is 1011 sq feet and needs a cosmetic rehab (paint, fixtures, kitchen/bath update, etc). No knocking down walls or anything major will be done. I am hoping it will take less time to finish but wanted to play it safe with my numbers.  I built 5,000 for anything unexpected into the rehab budget. 

Comps in the same complex are selling for 210,000 - 225,000, some aren't even updated. They have been selling in less than 20 days. Some even sold in less than a week.

I will make the offer today and if it is accepted I will have an inspection and a contractor estimate the rehab to make sure I am not far off. I am offering significantly less than the listing price so fingers are crossed!

Does anyone see anything wrong with my numbers? Any expenses I left out?

Thanks in advance for your expertise!

@Shawn Ackerman Thank you! That information is very helpful. I will keep you updated on my progress.