Under contract in Cape Coral, FL

[Rocco L.]

I want to get more feedback of this deal..

I have a 3/2 2300 sf house with pool and hottub, water views under contract for 145. I did my walk through yesterday and I needs about 35k worth of work ..The ARV is around 215-235 from what the agent said and what I can see from the comps.. but the house needs a lot of work..

Now I think 145 is too much to spend.. I need to be around 130-135 to be in this for a 10%+ of ARV profit.

Assuming the MPP formula:

ARV of 215- 35 reno -17fixed costs-30 expected profit = 133. That's the number I should be at.. I think the 12k really makes the risk go higher in case something goes wrong that is unexpected..

Using the MAO formula

215x.7-35k = 115k but I don't think this is too realistic.. The bank would never let it go for this much.

Looking for some opinions on this deal from some experts..

Thank you.