Is this a good deal?

[Saji Ijiyemi]

I am a newbie. I am looking at a 1999 property that is currently valued at about $525K but currently on the market AS-IS for $480K. The seller wants to give $10K towards closing. Major fixes from inspection are 1) New roof, 2) New HVAC 3) Repair fireplaces 4) Water Heater. The contractor put estimated total repairs at $27K. I need to make a decision like yesterday and just wondering if this is a good deal. Thank you.

[Aaron K.]

For flipping no it is not, because lets assume purchase price 470k + 27k in repairs = $497k it will probably cost at least 5% of the sale price in realtor fees and closing costs probably more so ($525k x 5%)= $26,250

So $497k + 26k = $523k thus in a best case scenario you risk half a million dollars to make $2,000 if anything goes wrong you lose money, if you have to borrow you probably lose money.