What the Flip??

[Joshua D.]

I need help with making sure our numbers are good. This is our first true non owner occupied flip... So here goes. 

Forclosure Purchase price is $43,000

Conservative ARV biased on comps in the area of $85,000

Repair cost $9,780

Repairs include. New roof, carpet paint, flooring, windows, bathroom update, kitchen and a ton of cleaning and yard crap hull. 

Holding costs are $205 a month 

We will Pull an interest only loan of $55,000 at 5.5% for the first 6 months then it will be amortized at 15 year. At the same interest rate. With a 5 year ARM. Although we plan to sell in less than 6 months.

Loan costs will be about $3500 so we will get about $8,000 at closing to use for rehab funds. 

Total expences are about $15,000 for a total of $58,000

Sellers commissions & closing. $7,400

Return?   $15,000. 

Any thoughts? Constructive criticism would be great.

[Darren Budahn]

Are you sure you can put on a new roof, update kitchen and bathroom, put in new flooring, windows, carpet, and paint the house for under $10,000? How much is the new roof alone?