Possible Flip...Help Analyzing!

[Jamie Wooley]

Hey BP,

I am interested in a property in Fort Worth.  I like the numbers and the area.  

Here are the basic numbers please tell me your opinions.

$245,000 Purchase Price

$115,000 Rehab & Addition of 600 sq ft

$468,000 ARV

Taxes $7,137

The addition would make it a 4 bed, 2 bath and 4 car garage.

[John Thedford]

Hello @Jamie Wooley. You need to provide a lot more info for us to know the quality of the investment. Are you going to flip it or hold for a rental. Taxes, insurance, maintenance, CapEx, financing, etc all figure into the equation. If you don't have Galinelli's book get it for your library (what every investor needs to know about cash flow). If a flip, estimated holding costs, costs of sale, etc. If a rental, the items I mentioned above are needed to calculate your returns. Are you sure of the numbers provided? Got good research?