Take a free ride… - Posted by Glen SoCal
Posted by Glen SoCal on February 11, 2002 at 21:33:00:
I’m not a sage investor, and neither are you, right?
And the deal does look a little skinny, as skinny as your wallet, yes?
Look at it this way. After about 20k plus in rehab, $5,500 in arrears, holding costs -another 6k, then 15k in selling costs, (these are all rough) on top of purchase price and $1,500 to the seller when they vacate, there will be $14k in profit. Now let’s say your investor wants 65%.
That leaves you with $4,900 for a zero $$$ investment, or about $3,500 after taxes and an EXCELLENT education. Not bad.
This scenario plays out if the rehab doesn’t go above 20k and holding costs are correct and you use an agent to sell. ,and the property sells at the high end, 160k.
If it sells at 150k, then you guys split 65/35 on a whopping $4,000. That’s $1,000 to you after taxes.
Still a good deal for no $$ risk to you, and still an excellent education.