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Updated almost 7 years ago on . Most recent reply

User Stats

48
Posts
8
Votes
Nick S.
  • Algonquin, IL
8
Votes |
48
Posts

calculating a property to buy, hold (1 yr), flip or rent

Nick S.
  • Algonquin, IL
Posted

having a difficult time using both the brrrr and fix and flip calculator because i intend to live in the property for 1 year so not a rehab. these calculators seem to assume i won't live in the property. based on the factors below, i'm hoping someone can poke holes.

arv=270k

repair=my father who is a general contractor is overestimating at 35k (it's definitely livable, but there's opportunity to upgrade/update such as the roof, floors, cabinets). i'd live there for a year and plan to either flip or rent after the year.

annual expected property tax=$7.5k

listed price is around $235k ($/sq ft is below comp average)

comps within the past year for similar properties around $260-$280k

preferred profit (not too sure about this) but $20k is a target...i guess.

estimated rental based on recent is $1.8-1.85k/month

i was thinking about offering $210k max, but the calculators recommended an estimated purchase offer between $160-$175k, which seems extremely low given the livable condition.
what am i calculating wrong here? 

would appreciate any feedback. thanks.

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