Hi BP Family,
I'm a rookie in the REI space but have been in the residential remodeling industry for over 25 years. Rehab cost and time completion is not an issue however I find myself in the paralysis analysis mode in pulling the trigger on our first fix N flip because of my novice with the offer end. If anyone would be so kind as to review and offer input on my below math, I'd be happy to talk rehab shop in exchange. I'll talk rehab shop anyway!!! My problem is my Realtor has pulled comps of $225 - $250k with an average sf price of $125. As I see it 1624 sf x $125 = $204K however when I pull comps up matching apples for apples, I see the AVR at $184k.
Here’s what I see in the numbers;
Flip Calculator Analysis
3 Beds, 2 Baths
Ranch - 1624 sf
Built 1981
.37 Acres
Waterfront
Profit & Projections
| Total Projected Pre-Tax Profit: | $33,467.10 |
| Total Personal Cash Invested | $60,512.90 |
| Holding Costs Per Month: | $1,837.50 |
| Return on Investment (ROI): | 55.31% |
| ROI (Annualized): | 168.22% |
Profit if held for...
| 45 Days | 90 Days | 270 Days |
| $37,912.66 | $35,245.32 | $24,575.97 |
Property Information
Financial Information:
| Purchase Price: | $80,000.00 |
| Purchase Closing Costs: | $6,000.00 |
| Estimated Repair Costs: | $45,000.00 |
| Total Cost of Project: | $131,000.00 |
| Projected After Repair Value: | $184,000.00 |
Monthly Expenses:
| Mortgage Payment: | $800.00 |
| Electricity: | $125.00 |
| Gas: |
| Water/Sewer: | $125.00 |
| Sewer: | $150.00 |
| Garbage: |
| HOA Fees: |
| Insurance: | $300.00 |
| Property Taxes: | $187.50 |
| Other: | $150.00 |
| Total Monthly Expenses: | $1,837.50 |
Loan Information:
| Total Loan Amount: | $80,000.00 |
| Loan Points and Fees (Out of Pocket): | $4,400.00 |
| Loan Interest Rate: | 12.0% |
| Total Monthly Loan Payment: | $800.00 |
Sale Information:
| Sales Price after Fix Up (ARV): | $184,000.00 |
| Real Estate Agent Fees: | $5,520.00 |
| Other Closing Costs: | $2,500.00 |
| Total Days Held: | 120.0 days |
