Posted by Brian on September 19, 2003 at 15:08:24:
Congratulations!
I’M GIDDY! - Posted by Tim (ME)
Posted by Tim (ME) on September 19, 2003 at 14:35:46:
I just have to tell someone!
I am buying a 3 family building that needs rehab work. Here are the numbers:
Purchase price = $159,900
Estimated repairs = $22,000
My plan was to rehab it, then keep it as a rental. I figure it will cashflow about $500 per month if I do that.
Well today, I got the official ARV appraisal from the mortgage company, it came in at $216,000!!! I may just flip this one after I get it fixed up.
I’m just so happy!
Tim (ME)
Re: I’M GIDDY! - Posted by Brian W(IL)
Posted by Brian W(IL) on September 23, 2003 at 02:16:21:
Tim, congratulations on finding this deal, however, I am just curious about a few things. First, you mention that you will have a cashflow of $500. Based on the numbers that you gave, can you show me how you came up with this figure? Next, will your cashflow be before you pay for utilities, mortgage, taxes, etc. I just don’t see you cashflowing $500 from a property where you paid $159,000, it has $22,000 in repair costs, and it only appraises at $216,000. That seems kinda skinny to me. If you could explain to me how you come up with these figures, I would be ecstatic because I am finding deals like this all the time and even some that are better. Thanks
Re: I’M GIDDY! - Posted by Jeremy
Posted by Jeremy on September 20, 2003 at 21:30:10:
Hmmm why flip it and cut into your profit unless you need quick cash fix. You could option it for 230,000 and make a nice chunk of change ;o).
Re: I’M GIDDY! - Posted by RichV(FL)
Posted by RichV(FL) on September 20, 2003 at 06:03:57:
Tim,
Sounds like you have a winner there. Good luck.
RichV(FL)