[Calc Review] Help me analyze this deal

[Tiffany Murokozi]

I am considering pitching this to a few buyers to see if interested. I would like someone else to analyze the deal to see if they look like solid numbers an investor would be interested in:

Purchase Price ($215,800.00)
Purchase Closing Costs ($3,000.00)
Total ($218,800.00)

Total Rehab Costs ($40,000.00)
Total ($40,000.00)

Monthly Holding Costs ($100.00)
Total Days Held 60
Total ($200.00)

After Repair Value $300,000.00
All Selling Closing Costs ($3,000.00)
Real Estate Agent Fees ($18,000.00)
Total $279,000.00

Total Profit for Flip $20,000.00

*This link comes directly from our calculators, based on information input by the member who posted.

[Parmesh P.]

My opinion is, don't do this deal in this depreciating market. There are too many uncertainties in the present market to have a projected profit that small. If you apply the 70% rule, based on your data, your purchasing price has to be $170K. (70% x ARV – repair cost). This is just a safe way to analyze your deal but you have to do all your homework.