A second set of eyes on a duplex in Memphis

[Ben Roberts]

I am considering a duplex in Memphis, this would be my first flip/buy and hold. Would someone mind taking a quick look and offering their opinion on the deal?

The property is $89k, the repair estimate is $12k. The expected ARV is $140k. Ideally, I would fix it, get it rented out, and then flip it. The worst case scenario is me buying it, fixing it, and holding it as a rental. I have some cash to put in the deal from my HELOC and I already have 1 hard money lender ready to finance the purchase, but his interest rate, 11%, makes the absolute worst case scenario a little thin. My cashflow would be about $90/mo. I've already reached out to a few different lenders and will continue to over the next couple of days.

Just a gut check, do these numbers seem reasonable? Does this seem like a good deal to anyone else?

Thanks in advance for your help/opinion/advice.

Ben 

[Ryan Blake]

@Ben Roberts if your numbers are all accurate as far as rents, repairs and ARV are concerned, I think it could be a good deal. What you need to look at is if you end up holding it, how quick could you get a rate and term refi to put you on a 30 year note with about half as much interest. @Dennis M.'s comment of not liking the $90/month is because that is a very thin margin but if you are cash following almost $100 at an 11% interest only payment, you are going to be golden when you get that on a 30 year amortized payment schedule. Just make sure you have that opportunity to refinance before committing. This property is ripe for BRRRR.