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Updated over 5 years ago,
First investment property
Hello!
I have been on this site reading and following for a couple years now and finally have the courage and opportunity to go forward with my first investment purchase.
The property is a single family home, 3 bed, 2 bath in the Denver metro area, it’s a wholesale purchase for about $180k. The Zestimate is $405k. It really needs a lot of work and hoarder has been living there.
I’m planning on flipping it because im going in with my brother in-law who is a general contractor and can do all the labor and home improvements. I am the one putting down all the money - purchase price, closings, materials etc. my brother and I will split the profits 50/50 when we sell it.
Since this is my first rodeo...I’m not super familiar with estimating everything in my head. I’m running the numbers on some spreadsheets I downloaded for free and guesstimating the costs. How nice do I need to make the property to flip...granite, stainless, hardwood etc? The market is slowing down in Denver for the season and want to make sure we can sell.
Is there anything I am missing that I should be aware of? I’m buying as low as possible, rehabilitating as cheap but as nice as possible and selling in a good area. What am I missing? Is there something that might bite me? Is my partnership fair?Is my all cash deal smart? What could go wrong? 😀
Thank you all for your feedback!