Interesting offer... should I take it or nah?

[Hobart King]

I am rehabbing a house in a nice area that I purchased for 15k and I have another 3-4K into it to strip it down to studs. Im fairly confident i can rehab the house for 145k which has me all in at 160k (the 3-4K of Demo is baked into the 145k number). ARV is conservatively 200k but I am pretty sure we can get 215k. That would put my profit less realtor fees/closing costs at 25-40k.

Here’s where things get interesting. There’s a vacant lot next door that is 10+ yeas behind on taxes. I tracked down the owner and she’ll sell me the land for $100 plus clearing the taxes/liens. I have no clue what a fair price for a vacant piece of land in this area should be as none have sold in the last 5 years. There’s one listed for sale for 55k that is not cleared (my lot is cleared) but it hasn’t sold. I think a homebuilder could build a 1900 sq ft 3/2 and sell it for 330k minimum at a cost of 130 per sq ft which would put their profit less realtor fees at conservatively 63k if the land was free. I was thinking 30k for the land and it seems to have generated some attention at that price.

Got an offer today for 90k for house plus land. Should i take it? Also of note I am very inexperienced and this is my first flip so may be wise to cash out on this deal and start looking for more. What say ye?

[Russell Brazil]

Always take the easy money.