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Updated over 6 years ago on . Most recent reply
calculating a property to buy, hold (1 yr), flip or rent
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.