First Flip Analysis

[Chris Pasternak]

What do you guys think? This is my first go at analyzing a flip. Overall, I like to be on the conservative side. A bit about the house: 2 bed 1 bath, half duplex, 830 sqft. Right now it's listed at 25.9k with a terrifying sewer backup overflow covering most of the basement floor, keeping most from going further than opening the door and smelling its stench. I have a ARV of 35k based off of sales in the neighborhood. I've been advised it could sell for upwards of 50k if rehabbed however. Most work is cosmetic in nature. Biggest costs will be the roof, and carpeting.

ARV: 35k

35k x .7 (70% rule) = 24.5k

24.5k - 11k (repairs) = 13.5k

13.5k - 2.5k (holding costs, 4 months a good timeframe?) = 11k

11k - 8.5k (buying costs, 7.5k for purchase and 1k for closing (cash)) = 2.5k

2.5k - 4.5k (selling costs, 4k for commission, 500 for warranty) = -2k

35k - 24.5k = 10.5k (profit) - 2k (overages) = 8.5k (final profit)

It doesn't look like the greatest profit, but my main goals going in to this is to not take a loss on this venture (hopefully making a bit on the way), and to learn a tremendous amount about the ins and outs of a house (myself and a couple friends will be doing all the work except for the carpeting, and plumber/electrician inspection).

Please let me know what you guys think and if you require more info.