Help me analyze this deal

[Steven Bonfante]

Hi folks,

I'm a analyzing my first legitimate deal.  I've done plenty of analysis for practice but this one will be a serious offer.

Let's start with the property description:

• Senior community (55 and over)
• 2 bed/1 bath
• 980 sq/ft
• 1 car garage
• Slab
• Built in 1973 and still looks it
• Bank owned
• On the market for 44 days

Repairs:

• New laminate floors
• Kitchen cabinets and appliances
• washer/dryer
• New bathroom
• Paint, molding, doors, light fixtures
• Central AC compressor

Numbers:

• Asking price:  $79,900
  
  • Taxes: $1580
  • HOA: $260
• Repairs:  over estimating at $24,000
• ARV: $115,000 - $120,000
• Estimated rehab/resale time: 120 days
• Profit expectations:  $20,000

I'd like to make $20k and the BP calculator is telling me to offer no more than $52k. These are nice units in a nice community and our realtor says they are selling well. I met an investor at a meetup who has done a few of these and he said about the same in respects to ARV and repair.

My concern is my offer.  We just missed out on an opportunity on a similar unit that was asking $57k that got multiple offers and settled for more than asking.

I know we have to trust the numbers but am I over analyzing somwhere?  I don't want to get stuck in the paralysis but still want to make sure it makes sense.

Any advice would be appreciated.  Hope I supplied enough info.  The analysis link is below.

Thanks,

Steve

View report

*This link comes directly from our calculators, based on information input by the member who posted.