Help me analyze flip

[Sorin T]

Can you guys please tell me how much would YOU pay for this deal? REO property on the market for 180 days with no offers, asking price is 176K, ARV 225K, repairs around 25K.
I plan to hold it for around 90 days to do repairs and to meet seasoning reqs, and finance it thru a HELOC if it makes a difference. How much would YOU pay for it and how would you structure your offer to the bank so it has greater chances of acceptance? Thanks

[Sorin T]

Hello folks, I got my own success story!

Just thought I'd provide an update on this old thread, since this was my first flip (I do own a handful of rentals here and abroad but this was my first flip, real tangible money)

So, for the property I referred to in my Mar 17, 2011 post in this thread, purchased in August 2011. That was barely 2 months after buying my own residence which needed a ton of repairs also, you could only imagine the hoopla I went thru with family for venturing in too many directions at once. Yes, last year was quite stressful for me, but lucrative. Now the numbers:

Purchase price - 81K
Rehab costs - 9K
Carrying costs - 5K (interest, taxes, insurance, utilities)
Sale price - 145K (last week)
Closing costs - 5K

Net profit - 45K

(not to mention the buyer rented there for 2 months before closing, another 1.6K)

All this on the side, since I have a regular 9-5 job, quite demanding, and a large family which I won't ignore, no matter what.

From what I read around here, my margins aren't too bad?
Either way, I'm hooked, and psyched, already searching for my next deal. Doubt it will be that lucrative again, but nevertheless, looking for it now.

Thanks BP community for all the resources I found here that helped me accomplish this! I have a true success story to share! And hope to see some of you this week-end at the summit!

All the best,
Sorin