Deal or No Deal, under contract for $6k

[Wes Barnes]

I recently got 405 N Avenue K, Portales, NM 88130 under contract for $6k, it is a fixer upper. Full gut. Hoping to do a fix and flip.

Asking Price 15k

ARV - 65- 70K

Got it under contract for 6k

Reno- 30 - 35k

Is it worth the headache?

[Trent Stone]

Flipping Formula

(ARV x .7) - Rehab costs = Max Offer

(65,000 x .7) = 35,000 = 10,500

A 30k return on your 6k purchase price? If you are sure about your numbers it's a no-brainer. 30k for more expensive flips is a good return. Also, J Scott says he likes the total guts even more than moderate rehabs because you are already expecting the worst and you won't have any surprises. Make sure you have concrete bids for the rehab and you have a good contractor and your ARV comps are solid.