Advice on a flip deal

[Cody Johnson-Winsett]

As a new investor I am trying to work on my deal analysis. This is base on a house that is in my area. If the Pro Flippers would be so kind as to look at my analysis and get feed back. It's a nice little 4bd 2bth, 1,136 sq ft that does need some major tlc. The asking price is 67,500 (realtor.com) yet I'd offer 60,000 or lower. It needs interior and exterior paint, new fixtures and appliances along with some new shelving and dry wall, and of course some yard work. I can do it all by myself and with help from experienced family members. I would definitely have the property inspected to be safe but this is what I can tell. A budget of 20,000 or less and I can get it done. I will need to talk to a lender for 90,000 just to be safe and homes similar to this in a 10 block radius are all listed at 120,000 and above, if I could shoot for 120,000 (depending on what all I have to do) which is a 30,000 profit bet in actuality I estimate 20,000 with taxes and closing cost and any other hidden fees.

[Thomas Miller]

I'm not a pro but the numbers look good who doesn't love $30000 profit. I'm a big believer in Diy, but you need to balance the savings of diy with the cost of holding the property. I usually will hire out one larger piece of the work, like a roof or exterior paint a and do the rest myself. It speeds things up. If you hold a full-time job and are on the flip nights and weekends, your hold time will stretch out. Your utilities, insurance, and taxes add up if you aren't careful. Another thing to watch is insurance companies are reluctant to insure an unlikely occupied property very long. All said I recommend that you do it, if you don't come out as great as you thought financially, you will come out a wiser man! And where can you buy wisdom? Best of luck!