My first potential deal

[Brandon Purdeu]

So after about 2 dozen showing I have narrowed it down to 2 properties but I'm leaning towards one property, I would love some input on my numbers.

The home is on a lake with direct access and about 75ft of lake frontage in a desirable neighborhood of Pinehurst, NC. The home next door sold last year for $386,000 but has an extra bedroom and 700 more SQ FT and better floor plan.

Purchase price: 161,500

Holding time: 6 months

ARV $300,000

Holding costs: $2890 (Taxes: 1290, Utilities 1000, Insurance 600)

Selling Fees: $21690 (Commission 15180, Closing Fees 5060, Brokerage fee 300, Warranty 500, Title insurance 150, Appraisal 500)

Buying costs: $2800 (Brokerage fee 300, Inspection 400, Title search 300, title insurance 150, closing costs 1650)
Financing costs (hard money interest only) 14000

Total costs: $41380

Rehab estimate 53,000 ($20/SQ FT + HVAC replacement of $7000)

House needs new flooring throughout some framing work to close in rooms, wall paper removal, new kitchen and bathroom cabinets and paint throughout.

Total investment: 255,880

ARV: 300,000

Potential profit: 44,120

House will be 3 bedroom 2 bath when complete with 2300 SQ FT and attached garage.