Another deal?

[Brandon Purdeu]

I am in contract on my first flip and wrote about the process in an earlier post. As part of my investing strategy I wanted to have a GC do all the work to free me to continue to scan the market. Another deal popped up on the MLS (well it's been on the market for 90 days but dropped the price into my range) that I will be looking at tomorrow with my GC & realtor.

First off I want to evaluate the numbers and get some input then some advice on if I should try to move forward right away or get the first flip under my belt and pass on this one. 

The numbers: The home is on a golf course little 2 bedroom 2 bath 1050 SQ FT. It is built to be a vacation home or a summer home. Asking price is $68,000 and a tax assessment of $110,000. It needs  a basic reno of approximately  $18,000. So based on that I want to get the house for around $60,000 (70% of 110,000=77,000 and 18k in reno keeps me in tolerance). Profit looks to be around $16,000 initially which I'm happy with. 

Next question: I am under contract for a home and am using almost all of my free cash for the reno of that property. Thus this deal would have to be done without me putting any skin in the game because I simply don't have it. I like to have my own money in the game because it lowers my interest expenses and I think makes the investor feel more comfortable. At the same time if I want to grow I need to learn how to leverage. I have started my LLC but have not cash flow statements to show so a business line of credit is out of the picture for the next year, looking for any recommendations on what to do. The risk adverse Brandon is telling me to just stick to one property but the investor in me says go for it...

I know if I find the right deal the money will fall into place but this time I don't have $18k laying around for reno costs...