First Flip

[Daniel Inman]

Looking into my first flip, here are the details.

Good Neighborhood, one downside is its on main street but has a rear access.
SFR REO Listed for 277 days and 4 auctions later
ARV (lowest comp based) - 196K
Selling costs - 21.8K
Holding Costs (hml) 6m - 16K
Rehab Costs (20% over) - 35K
Max Purchase Price - 92K
Profit - 31.2

Trying to go this route via HML with all fees deferred till close.
Going Thursday or friday to talk to hard money lender but might have to find another if he is unwilling.

I might be leaving something out but basically this deal I believe can be quite good.

Thoughts?

Best Regards,

Daniel Inman

[Ophelia Nicholson]

I tend to agree about the main street issue- I stay away from main streets or even streets where I see a yellow line in the road- Not alot of buyers want to live on a main street especially with kids, cars passing by etc.

If you are set on buying on a main street I would reduce my ARV by $5k to 10k because the appraiser will certainly take the busy street into consideration and the value will be less than a comp not on a main street. Also these properties your holding time tends to be longer than average.