First deal Advice, and need assistance in how to evaluate.

[Matu Ambaye]

Good evening everyone, I would love your advice. I'm still fairly new into investing, and I have not done any deal yet, but educating myself for the past 7 months reading, studios, videos etc..., and I listen to the podcast and read the forums. There is a lot of great info for beginners. I'm hoping to hear great feedbacks. I want to have my first deal, but I don't want to make any unnecessary mistakes. This is an off market deal someone is trying to offer me, and I would love to hear what you guys think. Thanks!! 3 bed 2 bath 1,732 SqFt Dallas Tx, 75238 Built 1979 •ARV: $185K •Estimated repairs: $12K cosmetics, bathroom & kitchen updates, windows •Asking price: $132K •Buyer pays all standard closing cost & title costs •$5K non-refundable Deposit

[David D'Errico]

First tip is be sure to run your own numbers, don't take the wholesalers word for it. 

Assuming the ARV is really $185k (and that's a big assumption) and even if you doubled the repair cost to be $24k(which is probably on the low end) and estimate another $10k in holding costs and other fees....that leaves a possible profit of $19k......but if ARV is off and your rehab goes over budget you could be in trouble.......I would not personally put down 5k non refundable unless I absolutely knew what kind of deal I had. Hope this helps