Flip Deal Analysis - Orlando, FL

[Ian Tudor]

I've come across a potential deal that I am interested getting feedback on before I put in the offer. This deal is in Orlando, FL.

The target house is selling for 99k, 3/2, 1,275 SF, 1960 build, and has been on the market since March. Apparently, there was a buyer beforehand that fell through leading to a longer DOM. 

The house is move-in ready and should be able to finance conventional. However, it could use a cosmetic face-lift - new countertops, interior and exterior paint, landscaping, update lighting, new windows, new toilets and vanities. 

Other big ticket items seem to be in decent shape - HVAC (2007), hot water heater (2011), newer roof but I'm going to verify (doesn't look bad at all, I guess middle of life). 

Sold Comps in area (past 6 months)

- Comp #1: 149.9k - 3/2, 1.434 SF, 1958 build, 1 car port, nice finishes (stainless appliances, granite in kitchen & 1 bathroom, tasteful tiled bathrooms)

- Comp #2: 130.0 k - 3/2, 1,181SF, 1958 build, 1 car garage, nice finishes (stainless appliances, granite in kitchen & 1 bathroom, not a tasteful kitchen - color clash), few houses away from a major thorough fare in Orlando 

- Comp #3: 141k - 3/2, 1,081SF, 1978 build, 2 car garage, okay finishes (laminate countertops, not new appliances)

Rehab Proposal

- repaint interior and exterior

- install dishwasher, microwave

- new windows (12)

- granite countertops - 2 bathrooms & kitchen

- landscaping - small bushes out front for curb appeal, mow grass

- put garage door back in to make one car garage - currently a shed with a lawnmower in it.

- new toilets and vanities

- install island

- light fixtures (5)

I used J. Scott's book on estimating rehab costs for the approximation and came to around 13.7k and I added another 10% or 1.3k for beginner's error. This gets the rehab budget to around 15k. 

If I could buy the house for 90-95k, put 15k into it and sell for 140k. I believe the profit would be close to 15k after considering closing, seller commissions, holding costs, etc. If the house doesn't sell, the rentals in the area are anywhere from $1,000 to $1,200/month. With an updated house, I believe the house would get at least $1,100/month, making it 1% deal. Not amazing, but it would cover the mortgage payment, taxes, insurance, etc.  

I have a GC walking through early this week to give a rough estimate. 

Feel free to ask any questions. I look forward to the constructive dialogue. Thanks in advance.

Ian