Holding costs to consider for a flip

[Leland S.]

I'm considering making an offer of 212k on a place in Nashville TN area that is going up soon for 205k. It has already been redone nicely inside/outside but I'm told it has a mild cigarette smell somehow. My parents, who found it, say it could use another coat of paint on the walls to mask the old colors and hopefully the mild smoke. I think it could rent for $1600 and a recently sold comp is 227k. I was planning on having my parents live in there for a few months and paint it then sell it by owner in fall for $230k. Closing costs are just the loan fee's for me plus inspection then the hold costs would just be mortgage and insurance. Am I missing any other costs that might make this deal not worth it?

[Matthew Anderson]

Closing costs alone will likely make this a no profit deal.  I would expect you might lose money on this one.  Also, the numbers are not good for a rental -- so that is not a great option if you can't sell it for as much as you want.