Updated over 1 year ago on . Most recent reply
First house flip in Alabama
I'm looking at jumping into my first house flip. I would be doing this will a local partner, we would buy the distressed property in cash and get a hard loan for the renovations. As we are local we plan to do some of the work ourselves, but we will hire a contractor for the bigger issues. I've ran the numbers, we would get it for around 35k, about 35-40k in repairs and the ARV is right around 120k depending on the current state of the market. Is there any advice anyone could offer me for my first house flip? To me the numbers make sense and there is margin for error, I don't see why I wouldn't go for it. My only concern is that the time on the market is around 70-100 days.
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Be cautious at this price point. You will need to do this in cash, as this is below most lender's minimum loan amount. Change orders can kill deals at this price point. A $5k overspend on budget is a difference in almost 12.5-15%. Make sure to dial in your rehab budget.