Local flip that i don’t know if it’s worth it

[Steven Osterhout]

I am hesitant to put an offer in on a house because I feel like I’m missing something on the numbers. Feel free to take a look and give any responses you may have. 3 bedroom 1 bath no garage 1268 sq ft house built in 1953 with a crawl space. No central AC but has a floor furnace. The owners live in Florida and are ready to sell after the last tenant left the place in need of a complete remodel. Needs new roof, windows, gutters, new kitchen and bathroom to the bones. Water damage in one bedroom hence new roof. ARV is 85,000 Reno is 30,000 Asking price is $49,900 but offering $25k My issue is holding costs and fear of it actually costing more than $30,000 for a complete remodel. I’m gonna use a HML that is 12.75% with no points and an early payment fee of 1.5% of principle.

[Lisa Williams]

Hi Steven, I would say that if you think it will cost you 30,000 then you really need to budget for 45,000 and then if the numbers still work, go for it. You don't say anything about the plumbing or electrical service, but I bet at least one of them needs work. Plus, what area of Tulsa? Some areas are good for flips, some are better for buy and hold. PM me if you want to discuss. I am a realtor and can look up the address and see if I can find out anything else for you. Good luck!