Auction property fix and flip opinions

[Seng Vang]

Hi all,

A property that is being held for auction is coming up and the estimated repair cost will be $75,000 and the ARV is $150000. Again this is an auction property so I do not know the purchasing price of the property until the day of the auction. The property location is in Athens, GA.

So my question is, is this a good deal?

Any suggestions will help greatly.

Thanks

[Eric M.]

If you don't know the purchase price, how can you possibly know if it is a good deal???

The question to ask is....at what price is this a good deal? That will tell you what you can bid. You don't give enough information. 

Assuming your numbers are correct. Big assumption but only you know that.

150,000 minus 75,000 minus Holding costs (including all interest, utilities, taxes, permits, etc etc etc) minus transaction costs (buyers premium at auction, commissions, closing costs) minus your desired profit EQUALS what you can bid to make it a good deal.