Can We Buy, Rehab, Rent, Refinance, & Repeat It?

[Joshua Manning]

Corny Topic Title aside. 

This post is about a potential BRRRR Investment that I found in my area. Full disclaimer this is pretty much just a hypothetical deal, as I am currently not in a position to purchase this property at the moment sadly. Mainly want I'm looking for is whatever or not the estimates I have for this property seem OK. And with MAO that I got using the 70% rule do you think I could potentially negotiate the buyer into selling this property. I know that these I kind of vague as you guys only have limited information on the property, so at the very least tell me if this sounds like a good deal to you. If so why, and if not then why not? I'm trying to train myself into being able to analyze potential deals better, that way when I get ready to buy my first property I can do it with the numbers as precise as possible, and with as few mistakes as possible.

(P.S. If it wasn't clear above this is indeed a real property that is currently for sale. The ARV is based on real comps in the area. The rehab costs are mainly rough estimates with minimal research since I'm not actually able to take on this deal, which is also why it is a hypothetical deal)

Asking Price: $160,000

Sq Ft: 7000

Bedrooms: 5

Bathrooms: 5

After Repair Value: $310,000

ARV * 70% = $217,000

Rehab Costs:

Kitchen Remodel: $25,000

Refinishing Floors: $10,000

Patio Deck Re-Paint: $1,500

New Paint Job: $3,000

New Window Shutters: $1,100

New Concrete Driveway: $6,000

New Doors: $9000

Bathroom Remodel: $20,000

(4K per Bathroom)

Landscaping: $2,500

Misc. Flooring: $1,500

Pesk Control:$1,050

Light Fixtures: $525

Cleaning (Before & After): $1,000

Misc. Expenses: $2,825

Total Rehab Cost: $85,000

Maximum Allowable Offer: $132,000

Problems with House:

Dirt and Grime Literally Everywhere

Bug Infested

(I'm talking bees, wasps, spiders, mosquitoes, etc)

House is Outdated:

(Wierd Bulky Ceramic Tiles everywhere,

Tin RooF)

Located far away from main part of city

Has A Garage but the Garage is basically unusable. At least for a car anyway.

I figure since there are so many issues with this house that I would have to see to and take care of that I could negotiate the seller down to a lower price.