Possible first deal

[Christopher Blanco]

I think I found a great first deal...but it seems too good to be true. The deal looks like this:

• Its a single family forclosure, the asking price is $52,900
• House is a 1920 colonial. It needs a TON of work, but is beautiful!
• Comparable homes in the neighborhood sold $175K-$275K
• The house RIGHT next door, comparable (4bed, 4 bath, 2200 sq feet) sold for $229K last month
• I estimate to get up to the neighborhood standards, I would need to spend about 85K
• I estimate about 20K in buying, holding, and selling costs
• If I sell it for 200K, I can make $43K

Is it really that easy? Am I overthinking this?

[Steve Vaughan]

If you are up for the 'arduous' task (sounds like you are) and you have the money, I say go for it!

If you are using hard money and will be facing sell or refi deadlines in the middle of winter, I'd re-think.  Same goes for having a partner that isn't a good fit for whatever reason.  Don't forget your silent partner, the IRS, who loves to be at the closing table on these short-term profit deals as well.  All profit will be considered ordinary income.

On your own, with your own money or decent financing arranged, sounds like you have reasonable expectations @Christopher Blanco.  Best wishes!