Will this be my first flip?

[Shawn Culhane]

ARV: 110k
Initial Purchase: 73k
Rehab costs: 10k
4.5%, 30 yr, 5% down Note
SFR, 3 bed/2.5 bath/1650sf, 2000 model

I am a Realtor and will collect 3% on front and back end.
Closing costs will be paid by seller in initial purchase.

I think that's enough info, in a hurry at the moment....I foresee about a 15k profit relatively easily....Am I missing anything?

[Richard Warren]

If you are looking to flip, the note isn’t so crucial.

I wouldn’t call this a slam-dunk deal. If you apply a standard rehab formula to this deal it looks like this:

(ARV * 70%) â€" repairs = Maximum Purchase Price

($110,000 x 70%) - $10,000 = MPP

$77,000 - $10,000 = $67,000

The fact that you collect commissions makes it an OK deal as long as nothing goes wrong. If repairs are higher than your estimate it may not be so great. Many rehabbers today look for a deal at 60-65% of ARV less repairs.

:cool: