Is This a Good Asking Price on this Home for Fix and Flip

[Tim Ivory]

To moderators. I won't leave the address. This is not an advertisement. I need some help here and if I can't get it here, where can I? (Serious Question)

I'm advertising the property but not getting much interest so I'm trying to understand why. Is the deal bad, or are investors being cautious of the market as a whole?

The property has 425K ARV. The low point is 360K, high is 450K. I got the average sq/ft to determine the cost. I supply a sellers report including comps and market data to affirm the claim and make things easy for deal analysis.

The property needs approximately 70K to renovate and I'm asking for 250K. There is potentially 90K of equity to work with in this scenario.

Also, I was planning on flipping myself and simply dropping 35K into and sell for 350K, simply doing the floors and painting inside, along with replacing some drywall from mold issues, but I would tackle that myself and not get expensive mold remediation in there. In fact, most people who saw the place weren't concerned about the mold, less than 2K to clean and replace all the drywall etc, while others were immediately saying that's a 30K expense, that they would need to pay, like it isn't a choice and they have no cheaper options. They say they need to do it, but we are the ones essentially paying for it. I am confident they would probably fix it themselves to save money.

Do most people not consider putting the bare minimum in to sell for the bottom price point of the ARV? It should sell for 425K it top form, but would require 70K or 100K. You'd net the same if you did the bare minimum dropping 35K and selling for 350K. There is less risk.

The point of this thread, is hopefully, having some people can look at the pics and give me some insight and perspective here. What is a good asking price? How much to fix and why they came to that decision, assuming the cost of renovation entirely depends on one what decides to do to it, as long as its in livable condition.

I am not wholesaling the house, it's my mom's house. I am not adding any fees on the asking price.

Details - House is in TN

3 beds, with one bonus room downstairs with no windows

4 baths

4500 sqft

roof around 15 yrs (pics have black mold, cleanable with bleach)

AC units around same age, working but one needs 200 duct work and other needs new freon and leak fix.

No foundation issues

Biggest concern imo would be the mold.

Below are a few pics. Dozens more and video walkthrough can be found here via google drive.

[Marcus Auerbach]

Classic optimization problem. Find a local agent (on BP) who has experience with flips and closes at least 20-30 deals per year in your area personally. They can help you with precise ARV. In this market you want to price just below FMV in order to get multiple offers over asking. To be certain where that FMV is you need someone with sufficient experience.

In terms of rehab, here is how I would generally decide:

- fix everything that is a major red flag to a home inspector (mold..)

- improve what stands out cosmetically the most, focus on large things like walls, floors, garage door, exterior etc

- improve landscaping, cut, trim, fertilize and water everything around the house

- focus on kitchen and living room

- leave smaller and secondary issues to the buyer

- clean!