Looking for Advice on Parent's Property/Potential Flip in NOVA?

[Brian McCormick]

Hi All -

I'm looking for some guidance on options for my parent's house/my childhood home (I'm a newbie, so trying to think through if an opportunity exists here or if the NOVA/Washington DC market just isn't realistic for this sort of thing). Property summary:

• Location: Burke, VA (22015)
• Single Family Split Level 2-Levels
• 4 Bed/3 Baths, finished basement with exterior entrance
• 1,185SF Above Grade Living Area; 525SF basement
• Corner lot, approx .25 acres

My parent's have owned it 34 years and are looking to relocate full time out of the area (been splitting time between Burke and Myrtle Beach past 15 years). The house is in rough to ok shape, but needs renovations to bring it up to market value, in my opinion (thinking new flooring throughout, interior paint throughout, updated kitchen, updated bathrooms, landscaping, back deck repaired/replaced).

My parents are actively having discussions w/potential buyers who are looking to purchase the property as is and have received some verbal offers from direct mail discussions, but up to this point, all offers have been lower than my parents are hoping.

In my role as their beloved son, I'm thinking through options that would have them sell it to me while I rehab and then sell it closer to market value. Quick back of the napkin numbers I have run:

• Target Purchase Price: $370k
• Estimated Renovations: $40-50k (aiming for 2 month reno)
• Target sales price: $450k (this is based on my own research using county property records, Zillow, Trulia, and Redfin for neighborhood sales w/in past 12 months - not perfect COMPs, I know, but what I have to work with)

This is my first foray into this type of thing, so unsure if an opportunity exists, so please let me know your thoughts and help me understand if I'm off in any of my thoughts or am missing something. If anything, I'm looking at this as an exercise in my analysis of properties, etc.

Thanks!

- Brian