Looking to flip in Broward County, FL - here are my notes and questions

OK, so I just finished the Epic real estate investor training offered by Matt Theriault and also attended the South Florida Real Estate Investor Association meeting here - www.SEFREIA.com

Met some nice people and started this morning calling upcoming foreclosures with the intent of being a wholesaler. But I realized, I would prefer to simply buy these listed auctions and flip them. Why? Because calling people is a dead-end even using DealMachine (which I did). And most people are receiving many calls by the time I call them. 

It is more direct to just win the auction, fix the property and flip it. Here are today's auction results - https://www.broward.realforeclose.com/index.cfm?zaction=AUCT...

In short, 3 properties sold - 2 houses and 1. Let's ignore the condo. I dont want to get involved in those. Just SFR

18763 NW 23 ST PEMBROKE PINES, 33029 

- judgement amount 8k

- auction price 120k

- Zestimate 700k - 18763 NW 23rd St, Pembroke Pines, FL 33029 | Zillow

202 MADDY LN NORTH LAUDERDALE, 33068

- judgement amount 6k

- auction price 60k

- Zestimate 410k -202 Maddy Ln, North Lauderdale, FL 33068 | Zillow

Let's assess these sales:

there is  500k difference between zestimate and auction price for the first one and 300k of difference for the second one... wow!!!

but two issues loom:

1 - what does the inside of the property look like

2 - are there any encumbrances?

And now

- I met local guys who we know and trust that do fix and flip.. so I just need to funds for the loan.

The loan calculations

- I've found a lender that lends 90% of property price and 100% of rehab - https://vistacapitalsolutions.com/financial-options/fix-and-...

so for a 120k property, I estimate 20k of repair.

- I borrow 140k

- pay 10% down (14k)

- pay  3% closing costs of $3,600

- the amount due after 140k has the down payment applied is 126k.

- 10% of 126k must be in the bank when you borrow so $12,600 must be showing in savings.

- the bank account must also show 6 months of interest payments .. at 1% per month that is $7,560... so $12,600 + $7560 = $20k

- so adding down payment, 10% showing, 6 mos payments showing and closing costs, you need 37k in the bank before they will loan you the 140k.

Most fix and flips take about 6 months to do, that's why they have those loan terms.