Flip and hold Business Model

[Matthew A Rodriguez]

Flip and hold Business Model

1. Buy Distressed (70% ARV - repairs)
2. Buy in the path of progress (future appreciation/ GOOD SCHOOLS)
3. Buy a value add (add bedroom/bathroom ect)
4. 20% down with a 15% CoC return
5. 10k in cash reserves
6. Exit strategies are:
   
   1. Flip and hold
   2. Flip and sell

Example: 2bed/2bath

ARV:$100,000.00

Repairs:$40,000.00

Purchase Price:$30,000.00

Value Add: 1 bedroom

ARV W/ Value Add:$115,000.00

My Cash(20%):$14,000.00

Hard Money:$56,000.00

Refinance into a Mortgage:$54,320.00

3% down:$1,680.00

Equity:$60,680.00

Debt Service:$444.24

Monthly rent: $1,250

Expenses:

Vacancy:$95.83

Insurance$100.00

Maintenance:$172.50

Taxes:$125.00

Management:$115.00

Total: $$608.33

Cash Flow:$197.43

I want a conservative model that assumes no appreciation.

Does this model make sense to others?

Am I missing anything?

Constructive criticism please.