Newer House with Reverse Mortgage

[Mike Barron]

Hi all! New here and need some feedback on a house flip-flopping on. Most of the houses I've been dealing with are low ARV older houses, but a lady contacted me about a newer house she and her husband purchased in 2005. Her husband passed and she is now living with her sister. Anyway, she has a $66,000 reverse mortgage on the house and wants to sell fairly quickly.

The house is a 3bd/2ba 1104sqft single story built in 2002 on a lake in a very nice neighborhood.

The figures I come up with are as follows:

ARV: $98,000
ERC: $5,000 (Seriously! Only needs carpet and paint)
Wholesale Price: $71,500

Holding costs: $ 5068 (Hard Money Loan)

Loan Amount: $68600 (70% of ARV)
Months To Sell: 3
Interest Rate: 15%
Loan Costs: $2,058 (3 points)
Payment Terms: Interest Only
Loan Amortization: 24 Months
Monthly Taxes: $81
Monthly Insurance: $65
Monthly Payment: $1,003

Closing Costs: $4,400
Potential Profit: $12,000

I'd be purchasing for roughly $66,000 and wholesaling it for $71,500, and would make roughly $4,000 on deal the after splitting the initial closing costs.

I think the numbers are a bit tight, but it's such an easy flip. Is this a decent deal or not?

Thanks!