What am I missing ?

[Jason Davis]

I am making calculations to make sure my numbers and choices can make me a profit.

The ARV is $109k to $129k.

I have priced all my repairs and selections, rehab cast are in $12,500 range, I added 20 0/0 to cover overages etc, so let's say $15k

My purchase price is $30k (city owns house and 700 others and the are dumping them for cheap)

So the cost I have included in caps are:
Sales commissions on back end
Original purchase price
Hard money interest of 14 0/0 paid monthly
Per diem over 90 days ( part of hard money deal)
The rehab costs
Closing cost of purchase and sale sides
Insurance
Taxes
Electric bill
Water bill
Might have a trash bill due to being in the city

What have I missed? The sale price and hard money are accurate per my deal. And it's 1st flip!!

I plan on listing for $99,995

Thoughts?

[J Scott]

Originally posted by Silver A.:

Not even to another investor, try to find an end buyer who is looking for something like this in the area. That should bring in more $.

The big issue with doing that is that -- unless the end-buyer is a cash buyer -- you have to deal with the process of getting loan approvals, appraisals, etc, which can take several weeks. Additionally, if the buyer is FHA, he may not be able to get a loan on the property if you're flipping it without making any improvements (FHA will ask for a list of rehab items with invoices).