Your thoughts

[Fanon Hutchins]

Hello Everyone, 

After years of researching and finally convincing my wife to join in. We have found a property that we would like to buy and flip. 

The property that we are looking to purchase is currently a 556 sqft, one bedroom, one bathroom home on the market as a short sale. We would like to purchase the property for $165,000 and then expand the house, so it is 1,006 sqft, and make it a two bedroom, two bathroom home with a master suite. The contractor that viewed the property with us, estimated the cost of the construction at $100,000 with a 65 day time frame. Since I am a licensed agent, I will be able to sell the property saving on the commission. The ARV for the property after the constructions based on comps in the area, is around $395k to $415k. Making the ROI around 40%.

We are trying to find a partner, that would be willing to fund the project, and we would take care of the construction and labor of the project, and would share the profit of the sale 55/45, with us getting the 45% portion of the profit.  Does that seem reasonable?