new invester needs help with the numbers - Posted by Rene'

Posted by jmathis on September 11, 2003 at 22:47:56:

Rene,
theres not a lot of money at the front of this deal,
but what are your plans for the property?!?! hold or flip

new invester needs help with the numbers - Posted by Rene’

Posted by Rene’ on September 11, 2003 at 16:01:14:

I found a house in historic Atlanta. The owner paid $208,000 in Dec 2002. The comparables are from 150 to 300’s. The house needs about 40,000 in repairs. HIs asking price is 229,000. I don’t see a lot of money in this deal. Am I right? Rene’

Re: new invester needs help with the numbers - Posted by Joe

Posted by Joe on September 12, 2003 at 07:24:22:

Assume the house is worth $300K.

Selling cost=10% (6% agent, 2% concession, holding, closing, etc) or $30K

Repair = $40K

$300-$30-$40=$230. Where is your profit?

You need to offer 70% of market value less fixup or in your case $300 x .7 -$40 = $170K.

Joe