Posted by Claude on June 14, 2006 at 02:19:57:
Good job! Since it’s under contract you could flip it to another investor for a quick 2 grand or so. That way you get some cash and don’t have to deal with the rehab yourself.
help newbie w/ 1st deal - Posted by concept
Posted by concept on June 13, 2006 at 23:38:04:
ok, after 6 months of gaining knowledge and looking for deals i have found 1st one. 1st off i have (analysis paralysis like crazy, and i need help) its a 3 and 2 1500sq brick home located in a small town with a population of about 5000. comps are running 78k to 82k within a 1 mile radius, owner asking 43 i got it under contract for 40. only thing is it needs about 7k in foundation repair(i got 2 estimates) and a new roof 3k those are the 2 big ticket items that scare me, other than that its just mostley cosmetic things (paint outside, new fixtures, sinks, countertops, etc) but im a newbie so i know things pop up everywhere. all i need is a confidence booster and a little push to get over my analysis paralysis. anyway here are my numbers
max retail value 80,000
purchase cost -2,700
rehab cost -15,000
holding cost -1,550
sales cost -4,500
contigency 2% -1,500
profit -13,000
max purchase price =41,750
wicha think?
Re: help newbie w/ 1st deal - Posted by BTI
Posted by BTI on June 14, 2006 at 10:58:00:
If you plan on wholesaling, it doesn’t matter what we think, the opinion of the rehabbers in your area is the factor that counts.
If you are going to rehab it yourself and then sell it, then use the bottom of the comps to guide you when buying. Also check the area for current for sale and sold signs and get a feel for the current market.
Now the timing factor, how quickly can you rehab it, it is now june and with a flattening market and fall, winter approaching you will be losing the selling season in many parts of the country.
I still see a deal, but I would lower your price by another 10% or more. You fail to mention the sellers motivation and does the seller occupy the property.
With more facts, It might be possible for us to suggest some other ways to skin the cat.
Like a first girl friend, a first deal won’t be forgotten so enjoy the experience. Good luck!
BTI
Re: help newbie w/ 1st deal - Posted by LK
Posted by LK on June 14, 2006 at 05:04:10:
Sounds like you have done your homework. I just had a couple of comments and questions.
1- Is the HVAC, plumbing, and electrical OK.
2- If the house is on a septic tank, did you get it checked?
These items could hurt you on repair cost. Other than that it sounds like youve covered the bases and have got a good rehab/flip. Just keep a good handle on cost and watch your budget.