Analyzing a Flip Deal in NE Texas

[Kathleen Heine]

Hello,

This would be our 3rd flip, but I'm pretty conservative as we're still "newbies" so I thought I'd post the deal here and see what feedback I could get:

Pros:

- It's in a great area with a really good school district

- Decent size and layout (2100 sq ft. brick)

- Has 2 acres so we could sell the house and 1 acre and separate the other acre for more profit

- ARV $225,000

What it needs (or what doesn't it need):

-  The foundation estimate is roughly $20,0000 and with that will come plumbing issues. 

-  I'm guessing around $10,000 in plumbing repairs as it's on a slab foundation, most likely clay pipe and hasn't been used in a few years. We like to estimate conservatively (did I mention that already) and our last flip was about $8,000 in plumbing repairs.

-  The electrical doesn't have a grounding a wire so to rewire the house $10,000

-  New roof $10,000 (assuming it's on cedar shakes)

- The foundation issues are caused by large trees growing right beside/under the house so we'll need to remove them

-  As far as interior it's basically a gut job, but I think we could salvage the kitchen cabinets ($55,000).

- It's a foreclosure and the market is crazy so it'll likely sell between $65,000-$69,000.00 

Thoughts? Do you think there's enough room for $30,000 profit (with the potential of missing something or market dropping some)? Am I estimating way too conservatively or not conservative enough?

Thanks for any and all feedback!

Kathleen