[Calc Review] Help me analyze this deal

[Garrett Pearson]

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

I put an offer in on this house. It is my first deal. I am still in my inspection period so I would like to get some feedback before the deal is finalized. 

My question is are realistic profit margins for the market right now or am I selling myself short?

I wouldn't really question it if I could turn it around in 3 months and have it on the market by Spring. This deal will take 5 months before it even hits there market which eats into my profit margin. One of my major challenges is the fact that it can take me atleast two months to get permits from City Hall or pay an expeditor which will probably cost as much as the holding costs for waiting the two months to get the permits myself and hope that cuts down on the time. I'm showing the holding for 6 months for report sake but I am looking at atleast 5 months before it even hits the market. If takes 3 months to sell the property, I would need to subtract another 4k off the profit.

All feedback will be appreciated. Thanks in advance.

[Jon Crosby]

Ahhh..thanks for clarification @Garrett Pearson, not quite sure if there is enough meat on the bone with those numbers to make it worth your while.  

I know when it's your first deal, there is strong desire to force the numbers to work so you can get moving on your dreams, but I would just let the numbers speak for themselves.  But you can always chalk it up to paid education for anything you are under on your profit target.  Just don't go negative of course.  

Since you are in inspections, this is probably your best chance to try and knock down the offer price to help with the rehab estimates...perhaps that will give you a little breathing room should the rehab or sales go long? 

Maybe run the numbers if the place will pen out as a rental as well should you need to pivot your strategy midstream.  

Best of luck and keep us posted on what you decide to do, thanks for sharing your journey!