Flip as-is or Renovate

[Alex H.]

Cost of risk scenario. 

Reno Scenerio 
Off Market Purchase Price - $185k 

ARV = $315-335k

Reno - $55-65k

Holding - $10k

Closing both ends - $25k

= $335 , $315-$285 =$30-50k gain  

As-IS Scenario 
Purchase - $185k
Sale Price on MLS :$225- $235k

Closing both ends - $20k

Holding - $4k

= $235 - $209 =$16-$26k gain

In both scenerios I’ll be 1031ing it into a new investment. Option A would allow me to keep it as a long term rental . B , I lose that option but have less execution risk.