First flip.. nervous/excited/anxious... any advice?

[Meti Kay]

I have a deal for a good 2 bedroom condo in the works.. It's going to cost me 235 and about 7k in closing bring me to 242k in... the u it needs about 15-20k rehab to put it in mint condition (confirmed by the inspector who also works as a GM).. next door just sold for 295k within 5 days of people listed ( we are in a hot market in NY and many cash buyers are out there.. I work as an agent so I got in on the deal early sale day it was listed.. My broker believes it's a "no brainer" since I believe I can get more then he 295k accepted the neighbor sold since he/she sold out only within 5 days... I just wanted to see if my numbers are tight and still room for profit even if I needed 2-3 months of holding... 262k estimated all in... 309,900 estimated list price.... would take 295k 2 months holding (3k) = 265k Realtor commission (minimal im the realtor) Closing 9k .... 265k+9k = 274k 21k profit quick turnaround... Worst case scenario the HOA allows pets and comes with a parking space so I could rent for about $1900 which covers my fees and should cash flow $400 give or take ... It's an extremely competitive market here in NY with a surplus of buyers and a dwindling supply of homes which makes me think (confident) I can get more after the rehab.. my offer was accepted although another buyer wanted to come in cash after me... I feel pretty confident... any advice???

[Luc Boiron]

@Meti Kay Your profit is slightly on the low side, but it doesn't look bad if your estimate on the $295 is conservative, and you believe you could do even better.

Make sure you are accounting for all numbers. In my market, Land Transfer Tax is a b*tch that eats into deals. Financing is expensive - it sound from your holding costs that you likely are getting a traditional loan for it to be that cheap. Keep in mind that if you were doing this deal with private financing you wouldn't be able to make the numbers work, but using bank financing to keep that down is a way to help you make the deal work.

How confident are you in the $15-20k reno? Do you have someone who can do it?

Double check all your numbers. Will you be getting insurance (liability at least, I know it's a condo)? I reno'd a property that was 2 bed 2 bath and the reno was around $30k, and that was a pretty good price. It was fully done though, both baths, kitchen, paint, baseboards, all floors, etc.

Overall my opinion is that it sounds pretty decent, just make sure you're not missing any major costs.