Deal Analysis for First Flip

[Kris B.]

Hello everyone,

I think I have a pretty good deal lined up but I wanted to get some other opinions. If you don't mind could you let me know what you think about this deal and also how I should incorporate capital gains tax into the equation? Thanks for your time and also, this is my first post so hello!

The house is selling as a 3bd 1bath at 1,290sqft at $350k

Here are my figures:

Downpayment at 15% = $52,250

Purchase closing cost = $5,250

Sale & Closing Cost = $39,500k

Renovation & Mortgage payments at 5 months = $10,825k

Other holding costs at 5 months = $4,280

Payback Bank Purchase Loan = $297,500

Renovation Cost = $85,000

All in for $494,605

After my renovations and incorporating the unfinished basement I will have a 4bdrm 3bath house and 2,690sqft

Based on comps in the area and my real estate agents input we think we can sell this house for $540,000

This gives us a profit of $45k

I'm not sure how much to take out for capital gains and I know I'm leaving a lot of details out for the renovation. I've been in the construction business for many years doing multifamily renovations but this is my first stab with our new business doing single family flips.

Please feel free to ask questions and let me know what you think. Is this a good deal for a first flip?

Thanks!