Buying 2nd Rehab

[Danny Day]

My 1st rehab is complete and currently leased (cash flowing $650 per month, appraisal came in $12k over my estimated ARV, might sell next spring) and I am ready to start on deal #2.

BiggerPockets had a lot of great advice on my 1st flip. I made a lot of rookie mistakes, one of the greatest being that I wasted much idle time on the deal. I gave my general contractor too much slack and not enough incentive to finish the deal on time.

This time around I've got 2 deals I am submitting offers on. I will not be using a GC, I will not be buying via wholesaler, and I will not be spending any money out of pocket until its under contract.

Here are the details of my deals:

#1 - 3/2/2 - Built 1991, brick on 3 sides
ARV - $110,000 (verified by comps)
Purchase price - $61,500
Rehab est. $10,000
Time line for rehab: 2 weeks max
Rehab level: Minimal
Rehab description: Sheetrock repair, paint (interior only), carpet, new range hood, basic landscape, remove door inside
Total equity capture BEFORE SALE: $38,500
Less purchase cost: $3,517 (3.8% plus inspection fee & insurance)
Less holding cost: $4,500 ($1,500 PM fee, 3 months of holding)
Less selling cost: $3,300 (3% of ARV)
Total profit: $27,183

#2- 3/2/2 - Built 2006
ARV - $82,000 (verified by comps)
Purchase price - $42,650
Rehab est. $10,000
Time line for rehab - 2 weeks max
Rehab level: Minimal
Rehab description: Remove room addition for garage, add garage door opener / rails, install laminate wood floors living room, carpet 3 bedrooms, paint interior, basic landscape.
Total equity capture BEFORE SALE: $29,350
Less purchase cost: $2,800 (3.8% plus inspection fee & insurance)
Less holding cost: $4,500 ($1,500 PM fee, 3 months of holding)
Less selling cost: $2,460 (3% of ARV)
Total profit AFTER SALE: $19,590

I budgeted 3% for selling cost because I am a licensed agent. If they need a home warranty or closing cost assistance obviouslly those numbers will slightly adjust.

I am also paying a project manager to manage the rehabs of these deals. $1,000 per job, on site every day with status updates to me.

Your feedback / opinions are welcome as always...

Danny