Please Analyze This Deal

[Tristan Cortez]

Hello BP

I would like some Deal analysis on this potential flip.

It is a 2bed/1bath, 952 sqft house

I have to opportunity to buy this off market deal. It has been vacant for over 8 years, and has bedroom mold issues because of a hole in the roof. Below are my estimates of the repairs I think would need to be done to sell this house. I believe that after the repairs it could sell for $72,000. I will be meeting my contractor later in the month.

Purchase price : $15,000 (county assessed $26,880)

New roof : $6,000

Pier and beam foundation repair : $4,000

Outside painting : $2,500

Inside painting : $1,500

Inside mold removal : $ 2,500

Refinish hardwood floors : $1,000

New kitchen cabinets : $3,500

Rewiring : $3,500

Landscaping : $300

Plumbing : $3,500

Kitchen appliances : $500

Total renovation : $28,300

All in =$43,300

Sale : $72,000

Profit=$28,700 divided between me and my investor =$14,350 profit for me.

So what do you think?

Is it worth my time?

Did I leave anything out of the renovation that a house that has been vacant for over 8 years needs?

Do you think my estimates are too hight or too low?

Thanks in advance for your info.  

[Joe Butcher]

You may have overestimated the roof. I got a 1200 sq/ft house done for about 3K

Kitchen seems underestimated, but I don't know what the finish outs in that area are like.

Did you consider holding costs, closing costs? 

Did you base your ARV on actual sold comps in the area.

Those are a few things you may want to consider.

Good luck!