Only cosmetic issues

[Jeremy Martin]

Good morning Everyone, 

Wanted to some insight on what else I would potentially encounter if purchasing a fix-n-flip with only cosmetic issues. I have never done a deal before and really looking to get my feet wet. Asking price is 270k and the ARV is going for 320-330k.

Any tips on what I should prepare for? 

Thanks 

[Kuba F.]

You're very likely to be working for free in this deal.

At that spread between purchase and ARV, you have only between 10-15K of money after transfer and holding costs and that is if you don't finance and pay all cash. This is 10-15K for both rehab costs and profit.

Let's say it's 1500 sqft.  New floors @ $5/sqft = $7,000  Paint @ $3/sqft = $4,500, water heater $1000-$1800.  

You really need to define what it is that you can do to this property to increase it's value by 50-60K for less than 5K of rehab.