Fix n flip in Seattle

[Dan Chapman]

My partner and I are possibly doing our first flip together he is a contractor and can do the work wholesale. Need advice on if it looks good. here are the stats- property near Leschi 6 blocks from beach in central district. ARV is 610k-625k high end Purchase price- 360k Rehab costs- 80k Loan closing costs-12k 120 hold costs- 16k Monthly taxes and insurance-$375 Utilities est. monthly- $100 Realtor selling fees-5% $29,500 (we have a close friend for the agent.) Sale closing costs- $2,500 Excise tax- $10,500 Estimated profit range- $100k-115k Does this look like a good deal am I missing anything? Thanks! Dan

[Alex Chin]

I would say based on recent sales, if you're east of 29th Ave S., your ARV is probably a bit conservative and you should feel pretty good about things. If you're west of 29th and south of Jackson, might want to make sure your comps are good, I think high-end in that little corner tops out in the high-$500s. This is all very general, would need to know specifics to get into more detail.

If you feel good about your ARV analysis, just as a precautionary measure, I would add a 10% "Oh-crap" contingency fund to your expenses if you haven't already, and see if the numbers still work for you.

A more experienced flipper than I should probably chime in and let you know if there's a detail you've forgotten.