Opportunity to flip a home

[Varun Narayanan]

Hello BP! I am a new member to BP and just sent out an introductory post. I needed some recommendations on the best way to proceed with a potential property that I have found with regards to flipping it. The property is a foreclosure selling for about 50% of the property value of the area. I estimated this by working a realtor that is part of my team. I have funds for a conventional loan but not enough for repairs that will be needed. I have seen the property from the inside with my mentor who was in the construction business and owns 37 rental properties. We believe the repairs will cost about 40% of the current asking price. All in all, it looks like it could profit out to be 12-15k as a conservative estimate. What would be the best way to proceed with this property or rather what should my next steps be? I have not put my offer in yet because I have not yet come up with the funds for the repairs. I am also not very handy and that's why looking for s partner that is local, handy and can potentially come up with funds for the repairs. Let me know if I am approaching this wrong way. All the help is appreciated! Varun

[Will Barnard]

It would be much more useful to us attempting to help if you provided actual numbers rather than just percentages. Your answers will be better too!

That said, if the property's acquisition is 50% of the value and the cost to renovate is 40%, you have 90% costs already. With holding costs and resale costs, you would not have any profit, in fact, probably a loss.