possible deal in the country

[Michael A DeAngelo]

Ive got a house a 2500 sqft home on a 8.5 acre lot in the country. the home is in distress and probably needs 100k in rehab to get most market value out of it. the asking price is 80k and the ARV would be best 300k and lowest 250k. there seems to be meat on the bones in this deal but i need some help! i would also have to find money so that would be an added expense but i still think there is money to be made. Any help would be greatly apprectaied. Am i missing anything what do yall think? Thanks!

[Matthew Nicklin]

What do you need help with? How confident are you on your rehab cost estimate as this is really what is going to make or break you. I always tell people to work the numbers backwards. So for example $250k sales price - selling commission($15,000) - Repairs(~$100,000)- Holding costs($15,000)- Acquisition costs($5,000)- Purchase price($80,000). So assuming those ruff numbers are right then potential profit is $35,000. Again it is all about the numbers so you must be confident in them. Your rehab costs will vary based on your contractor, I always recommend over estimating as there will be things you find once you get into it that will add costs. Your holding costs will vary based on your loan terms, taxes, and insurance, and time held($15,000 maybe a very low estimate). Feel free to PM me I am happy to help with any advise etc.