What do you think? Flip it or skip it?

[Jeremy Jackson]

Still working on my first deal.

SFH

Asking price $46k.

ARV $85k.

Rehab costs $15k.

Rent would bring $850-900 if I held it (plan b exit strategy).

Annual taxes $1888.

Waiting on insurance quotes. I have no idea how to estimate.

I'm considering borrowing hard money for my first deal.

[John Horner]

Originally posted by @Jeremy Jackson:

Still working on my first deal.

SFH

Asking price $46k.

ARV $85k.

Rehab costs $15k.

Rent would bring $850-900 if I held it (plan b exit strategy).

Annual taxes $1888.

Waiting on insurance quotes. I have no idea how to estimate.

I'm considering borrowing hard money for my first deal.

This would be a tight one if you were paying cash, but add 10% interest and 5 points to the HML and it's probably not going to work.

You say rehab is $15k, budget for $20k.  If you think it will take 2 months, budget for 6.  If you get lucky on your first one and finish on time and under budget consider it a bonus.

Insurance is expensive for a vacant house, and usually they will make you pay for 3 or 6 months upfront even if you don't own it that long.

I plugged this into my calculator and at $15k rehab I got about $9,500 profit.  There is not much room for margin there.