Updated over 9 years ago on . Most recent reply
First Miami Flip_In need of advice
Hello All!
I recently found a potential property that I believe would make for a good first flip. The seller is motivated, and the house is in a great neighborhood. The house is currently listed at $325,000, but the sellers agent mentioned they would take something around $290,000. After running comps within a 1/2 mile radius, I believe the house can sell between $360,000 easily. The issue is as follows:
-Our estimated construction cost are around $60,000 to leave the house TurnKey ready. To give more information, the house is listed as a 3/2, but the "masterbed" is really an enclosed patio area. Its oddly placed, and has a sliding glass door for an entrance. Plus, its the only exit to the backyard. Simply put, the layout is obsolete and in need of restructuring.
-I am being financed through a hard money leader that with an interest rate of 12% for 70% ARV, which eats a very big chunk of my potential returns. Since I am just starting out, I dont know if I can get better terms, or if I have to accept that these are the conditions for novices starting out.
SO, Im left wondering if these is a deal worth pursuing. I believe I can lower the construction cost and just do cosmetic work, but I wouldn't know how much I can sell the property for with the weird room.
Any and all advice is most welcomed!!