Potential Flip To My Buyer - Please Review

[Dave Gibson]

The hard work and due diligence will be well worth it IF my buyer/investor is satisfied, closes on the deal, and make his money on the back end. Let me know if I'm missing something....not as nervous as I thought I would be and that's mainly due to feeling like I'm close to getting it right - meaning the location, property criteria and numbers are about where he wants them. Here's it is:

Situation - Family moved closer to the city (husband works in the city, in-laws are there and have been helping babysit so wife can locate a job - cuts down their daycare and travel expenses). They have been paying two mortgages for about 6 months. Had it listed, but had issues w/ agent and pulled it. Wants balance of mortgage and moving cost paid. Nice, established subdivision, comps $145 - $150k....they saw my bandit sign two months ago, but did not call until now. Been working with them for the past two weeks.

ARV - $145k
PP - $80k (also includes DP, CC, Insp., LF, RE Comm., and Appr.)
Repairs - $17k (this includes a 15% markup and addition of SS kitchen appliances - my recommendation)
HC - $2800 ($468mo x 3[Avg. DOM], Taxes, Insurance, Utilities)
Selling Costs - $8300 (RE Comm., CC, Warranty)
Wholesale Fee - $5k

Total Cost - $113k
Sell below market @ $135k
Potential Profit - $28k

Of course, the above numbers are more detailed in my analysis spreadsheet. Please chime in, though....I have a small buyers list right now, but w/ a few good profitable deals for them, it'll grow. Their references will be the best testimony of my work. It's exhausting...all the due diligence and everything else, but that's my strength and that's what I love to do. Good thing, I have some possible retail buyers/rent-to-owners lined up due to my marketing activities a few weeks ago. Just trying to make things as easy for him as possible.....

[Steve Babiak]

Originally posted by Dave Gibson:

...

Total Cost - $113k
Sell below market @ $135k
Potential Profit - $28k

.....

I see problems with simple math here. Sell price (135K) minus total costs (113K) equals 22K in the math I learned in school.

I'd say you're missing basic math skills, based on the numbers you posted and that are captured in the quoted snippet.