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Updated almost 8 years ago on . Most recent reply

User Stats

49
Posts
27
Votes
Jered Collins
  • Johnson City, TN
27
Votes |
49
Posts

First time flipping house? Thoughts on this deal?

Jered Collins
  • Johnson City, TN
Posted

First I apologize if this is the wrong section to post this in.  I'm new on this site and I'm still learning on the sections and whatnot. 

https://www.trulia.com/property/3241635889-3797-St...

There is a MLS listing for a 3BR 2BA home in Williamsburg, VA

Listed price is $104,000 (which has been reduced on the last couple months ago). It also says the owner is motivated to sell.

I have several rental properties that I currently rent out for cashflow but I'd like to have some more net working capital and have a great opportunity this summer to flip a house (have 3 months off from my job).  

I used the 70% ARV rule to help guide me through the process.

My desired profit margin is 30-40%.  

Comps in the area with similar sq footage (not completely rehabbed) are going around 170-215K.

I set my ARV target at $180K to be conservative.

The property doesn't have HVAC and the listing says it needs TLC.  The roof looks decent as I did a drive by earlier today.  I've estimated around 45K for a rehab.

Fixed Costs (realtor, closing, staging) = $19,200

Desired Profit = $40,000

Rehab Costs = $45,000

MPP (max purchase price) = $75,800.

As far as financing, I feel like this is going to be my biggest hurdle. I've had a busy couple of years with a wedding, honeymoon, child birth, and several moves. I don't have a lot of liquid assets right now to use for a down payment. I don't have a business line of credit yet (I'm still doing research on who is the best company to work with, recommendations would be appreciated) I have a credit card with 0% APR interest (military perk I received). I also qualify for 0% DP on loans through the VA (don't want to go this route because I'm required to occupy the home).

I appreciate any advice you guys have.  

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