Help a newbie with the numbers?

[Tiffany Watkins]

Hey BP community. I am a new investor in Washington and I need help with some numbers. I found a 2/1 w/o a garage, built in the 50s that is in an area where the median home price is $330,000. The neighborhood has homes that are larger and a lot of them have 3/2 with a 1 car garage. It's on a large lot. The house has been on the market for $215,000 for two months. I have a target buy price of $160,000 (I think). I am thinking about adding a master suite, a garage, and updating the current interior, and have a target sale price of $330,000. I am guessing the addition and remodel budget would be about $100,000 but this is one of the numbers I am not clear on. I am guessing the time frame would be 6-9 months but again, I'm not sure if that is realistic. I would be using hard money at 10% interest (70% of ARV) and making up the difference in cash. Is it realistic to expect $2500 a month in holding costs to include the mortgage payment, taxes, utilities and insurance? I also figure there will be a total of $8k in closing on the front and back end total and a 6% agent commission on the sale. If all my numbers are correct, I might profit at most $30K. Do you think the numbers are realistic and would you do this as your first deal if you have limited construction experience?

[Tiffany Watkins]

@Nicholas L. If there were less risky options in my area I would be all over them! I think I’m just going to invest out of state. Today I am researching which area I want to be in and plan to build my team as fast as possible.