600k is that too much for a first time investor?

[Collin WIlkinson]

I found a deal that has potential for a lot of profit. I am having trouble finding financing.

It's a large house and a great lot.

4750 square ft

3 bed 3 bath

2 acre lot about 30 minutes from Denver with an incredible view.

I would like to frame in a 4th bedroom.

The house needs about 80k worth of work. I've talked with a couple agents and I want to offer 500-520k. I do believe I can sell at 700-720k

I do not have the property under contract yet.

Is this too much to bite off for a first time investor. Any ideas on how to get it financed?

[Chris Lopez]

@Collin WIlkinson It's hard to give specific feedback on your deal since your post doesn't have many details.

You have two trends that may hurt your ARV:

• That price band of the market has softened
• If you buy now, you're selling in the winter, which is a weaker time in the market.

Now, those reasons won't kill the deal, but make sure you're realistic about your ARV. Many flippers are taking a haircut, especially now that market is seeing some increased inventory.

If you sell for $700k, subtract 6% for selling/closing costs (maybe lower if you get your buyer's agent to list for 1%) = $658,000 -  12,000 ($4,000/mo for carrying costs (x 3 months)) - $80k in repairs = $566,000 is what you net. Perhaps a 40 to 60k gross profit?  Then subtract taxes. 

It comes down to if those numbers are good with your risk tolerance and expected return.

Financing shouldn't be an issue, just work with a hard money lender. If it pencils out, you'll have no problem finding a hard money lender. Reach out to @Justin Cooper with Pine Financial. He's a good one.