Short Sale Flip Analysis

[John K.]

First-time investor. Ive been an agent for almost a year now. Ive done my hw as to what areas would be ideal to do a fix and flip, or possibly a prehab (making a property rental ready.). I found a property that I think would work as a prehab but need some guidance as to if my numbers sound right and whether or not to bother with an unapproved short sale. Here goes:

Property: 3/2 SF; 2000 sq. ft.

List Price: $209,900; Unapproved Short Sale; Terms are All Cash with Proof of Funds or Non-Cash w/ PreApproval Letter

Repair Est: From the info I have now, there is no major repair needed. I would have the property inspected prior but for now I'll assume $12 per sq ft. 2000 x $12 = $24000

Holding Costs: $1800/ month for 3 months = $5400

Closing Costs (Buy and Sell) = $5000

Based on MLS Comps there were 3 non-renovated properties with the same floorplan and less sq ft that sold and/or pending for: $285K, $299K, $289K. I would list this home on the MLS. My reno plan would make it one of the most aesthetically pleasing homes in the area.

Thoughts, suggestions, criticism... Im open to all of it. Thank-you in advance. 

[Brett Goldsmith]

@John K. Has the lender done a value yet on the home? I'd place an offer lower than 200k and test the water with the bank if not.  I'd account for holding costs for a minimum of 4 months as many times short sales can't be resold within 90 days for more than 120% depending on who the investor is. Closing costs on the back end seem a little low if taking into account commissions for the selling side, etc...