First potential rehab deal in Houston - are we missing anything?

[Mo Sheikh]

My partner and I have found what looks like a good first flip for us. We have the property under contract and are currently in option period. I'm hoping BP can help us and see if we're missing or overlooking anything.

As is illustrated below, purchase price is $180K and the house needs $55K in repairs. We also budgeted an additional $3K for contingencies. Our CMA shows similar houses have sold in the neighborhood for $310K to $330K, but we're conservatively estimating the selling price at $300K.

Based on the SOW from our GC, the rehab should take 2 to 2.5 months, with another 3 months allocated to market and sell the property. We're financing the purchase and rehab via a private loan from us to our LLC at 1 point & 5% interest. I think the estimate on closing costs is a bit high, but I'd rather be conservative and overestimate than underestimate.

We are confident in our numbers, but because it is our first deal we want to be sure we're not overlooking anything before we move forward.

Any feedback/advice?

Thanks!

[Trey Watson]

@Cody Kauzlarich @Mo Sheikh The profit margin on this is actually pretty great considering they are only 10k in with their own money. Mo is basically putting less than 5% down on a rehab loan which is pretty rare in Houston. Thats more than doubling their investment.