Putting an offer in on my first deal

[Andrew Cowles]

I'm analyzing a deal right now. It's an MLS property. 3 beds 1.5 baths 1281 sf and no garage but a car port with an asking price of 110k. It's a full rehab(new roof, new drive way, siding is good but a has a few cracks, needs drywall work in one of the rooms(hole in the wall and a crack in the ceiling), full interior needs updated, and some landscaping in the front and back yards. It has two living rooms and one of them can be converted into a laundry room and another bedroom. Right now the washer and dryer are in the kitchen. It's off of a main road as well. I'm going to offer 90k using a conventional loan 20% down and cover the rehab myself(estimated 40k).

My best comp is the house that sold 2 doors down that was just flipped this year that sold for 175k but was only 888 sf so sold for $197 per sf. If I go by price per sf that would put my house at 252k but just to be safe I'm estimating ARV at 200k and the numbers still work. Here are my numbers

ARV - 200k

Holding costs - $5400( $900 a month for 6 months)

Renovations - $40k

Purchase price - $90k

Closing costs on the purchase - $5k

Closing costs on the sale - $17k

I’m just looking for confirmation that I’m doing everything right and that this is a good deal. It’s my first deal so it’s pretty daunting so just looking for some advice. 

Thank you,

Drew

[Ian Walsh]

Unless someone here is in your market and knows the comps well, they won't be able to tell you if you have the correct ARV or construction costs.