Evaluating my first property

[Sean Dolan]

Unfortunately I was out of town when the lead came in from a wholesaler, but my wife (and business partner) had me on Facetime (iPhone video chat) during the walkthrough with our GC. I love technology. :) ARV of $130k Purchase price: $95k Rehab estimated between 18-22k (will be finalized tomorrow) Average rental: $1300/month Wholesaler fee: $2500 45 minutes from my house, which is nice. Wonderful/beautiful neighborhood, great location, the bank ripped out all floors due to the horrendous smell of cat, which remains. Counter tops are good, cabinets are structurally good, just needs paint. Needs tile throughout. Good electrical and HVAC - roof needs to be replaced in the next 5 years, if not sooner. Big beautiful trees, and large backyard. So, what's your opinion on these numbers, and how do you determine a flip versus a hold? I'm up for either one - I don't need the cash now (my marketing business provides cashflow to my family's desired standard of living). This seems like a better hold than flip, but I'm curious where/how you draw the line? I'm so damn pumped to get our first property underway, and more interested in the process (learning) than a fast return, but I also want my first one to go relatively well. Any input is appreciated, thanks!

[Daniel Hansen]

If your numbers are accurate, I would say the margin is definitely too small for a flip. It's better for a buy and hold... That being said, it's too expensive for my taste. I'd try to get a better deal.