Newbie Here - This a No Brainer Fix and Flip DEAL? Right?

[Michael Brown]

DEAL!!!

This is a no brainer FIX and FLIP. Am I right? Not a bad area. 80K owed to the bank per the county assessors website. Asking price of 129K. Comps between 210 and 370K.

Used the flip calculator with conservative numbers and this deal is screaming $$$$ at me. Am I missing something? 

Help me out BP!

[Michael Miele]

@Michael Brown

Im a Realtor in Marlborough and I flip houses. I know the house your talking about. My target sale price would be $299K if I were doing the numbers. You may get $325K but $299K it would sell quick. I did a quick look on masslandrecords dot com and in 2004 they mortgaged $185K then in 2005 -$53K and in 2006 -$80K. The loans from 2005 and 2006 look to have been paid off this past year so you'd only be dealing with the first mortgage of $185K from 13 years ago. I have listed short sales in the past. In my experience the bank won't even entertain a short sale until there is an offer on the table. Thats why some agents price the house low so they can get the ball rolling with the bank. If you submit a full price offer the bank will then get BPO's done and thats what they will base their value at. So in the end the bank may want $160K for the house and if no one offers that then they will foreclose and sell it on their own. 

Also on the listing it says the buyer has to pay $5,000 towards negotiating fees and that money can't be financed. I hate when agents do this. Things may have changed but when I listed short sales I had the bank pay the sellers attorney fees who was doing the negotiating. 

I would do your numbers and submit an offer at what works for you. 

Hope this helps.