Is this a good flip?

[Adam B.]

Asking price: $39k
Rehab: $15k
ARV: $85k +-$5k

On paper this looks like a good one, but I am a little scared because it's my first flip. I am paying cash so this should minimize some fees.

I also want to ask what should I offer? Is there a certain % you guys use to make your offers, like %80 of asking price?

Thank you for the info...

[Raymond B.]

Originally posted by AdamB:

I got the ARV from the mls. I looked at similar houses that had been rehabbed and took $5k off their asking price to come up with the $85k.

Thanks again for your input.

Adam,
The similar houses that you found on the MLS:
Were they already sold, or are they for sale?
If they are for sale, comparing them is useless.
You need to find similar houses that have been sold, within as close an area to yours, as possible.

To figure your purchase price, get the ARV, deduct 30%, and deduct your rehab costs, including empty house/rehab insurance, purchasing and selling, etc.

Ray in Ct.