First Deal

[Kris Walker]

So as the subject says I finally have a deal that might get me off the fence.  It's on a 3/1.5 townhouse that I am looking to flip.  Take a look at my numbers and let me know what you think.  Take it easy, I'm one of those newbies!

Purchase 75,000

Reno 30,000

Cost to Sell 15,000

Holding Costs / Taxes 5000

ARV 140,000

Profit 15000

Agent thinks he can get closer to 145k but I used 140k in my calculations to be safe. Anyone see any issue with my calculations?  I would be using cash for the purchase and reno.  Another option I am contemplating is to finance and keep it as a rental and reduce reno to around 15k.

Also I have a question on financing flips.  If an investor cannot purchase a flip all cash is it a bad idea to finance?  The reason I ask is because I know the broker doesn't make any money on the deal if you sell it within six months.  Do you worry about that?

Looking forward to your comments!

Thanks