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Updated over 6 years ago on . Most recent reply
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First Flip and scared to death
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@Eddie Quirk So if it was in GOOD condition, you would stand to make $75,000 gross profit. ($160,000 sell price - $85,000 acquisition price).
However, you have all sorts of expenses - and I'll just guess at your costs below. Things may be different in FL, but these numbers are about right here in MA.
Roof $10,000. $65,000 left
Floors $5,000. $60,000 left.
Wood rot $5,000. $55,000 left.
Cosmetics $10,000. $45,000 left.
Surprises. $20,000. $25,000 left.
Closing costs. $4,000. $19,000 left.
Carry costs (loan, taxes, insurance). $5,000. $14,000 left.
Re-marketing costs. $6,000. $8,000 left.
If you decide to update the electrical, plumbing, kitchen or baths, you're in the red.
This deal makes sense for a handyman / contractor who wants to owner-occupy and wants a deal where he can do most of the work himself. There's nowhere near enough meat on the bone to flip for a profit.
I think you'll need more than luck, but good luck!