A deal analysis

[Michael Stole]

This is the third flip deal I will be doing if I got the offer accepted. The house will be in sheriff sale this month. So it is in short sale now. It is a two-floor 2500 sqft SFH built in 1997 with fair market value 130k. The house is in good condition, except that

1) The roof is original, and several singles fall from the roof. It is time to replace the whole roof. Cost $7k.

2) The central air conditioner and furnace are original. They might work, but it is about the time to replace them. Cost $3k to replace.

3) leaking from the roof into the drywall of the second floor. A new roof will solve the problem of leaking. The cost for a new drywall will be $0.5k maximum.

There are several cracking tiles in the kitchen, but I won't worry about that. They are relatively easy to fix.

So my analysis is $130k*70%-$10.5=$80.5, which is the offer I submitted.

The house will be qualified as rental investment as well, since the rental can easily be $1.5k/month.

My concern is are there any other big things usually need to be repaired or replaced on a house built in 1999? Every thing else looks fine though.

Another question is: How much earnest money to put down? The more the better?

Thanks!