Is it a deal in Elgin IL?

[Sylvia Pomazak]

Hi everyone,

I placed an offer on a property in Elgin,an estate sale sold as is. The sellers are extremely motivated and have come down in price considerably by 45,000. When I run the numbers using a conservative ARV with the current sq ft there is no profit, however if someone is able to add 500 sq ft to the property then the numbers project a profit of 10,000.

My question is , would this be a deal?

Thanks for all your help.

[Crystal Smith]

If after purchasing, renovation, closing costs, holding costs..... the profit is only $10K then I don't think it's a good deal.  All you need is a small mistake in your renovation numbers & there's no profit;  possibly a loss.  There's no margin for error, which means it's not a great deal.