All Forum Posts by: Adam B.

Danny,

Did you ever find a house? I too live in Houston and will hopefully do my first flip in a few months.

Hope to hear good news...

Ray, (or anyone that can answer this)

Can you give me ball park figures on the following?

1) empty house/rehab insurance
2) closing costs (paying cash)

I know the selling costs will be 6%. Is there anything else I am missing besides utilities, hoa dues, taxes?

Do I need any other type of insurance?

Thanks!

One house (the exact same floor plan as the on I am looking to flip) on mls shows there is a contract on it, and it's priced at $94k. It has a lot of new stuff (roof, HVAC, completely new interior). The others are just for sale, and they are between $80k and $90k. I probably need to get a realtor to pull up all the sold houses in the area.

Thanks!

The $15k in rehab is a guess. I have worked with my father flipping houses about 10 years ago so I have a good idea of how much it would cost to rehab cosmetic items. As long as there aren't any major items (foundation, termites, etc..) I think $15k is a good ball park figure. Of course, I will do an actual budget after inspecting the house, but I just wanted to get your guys opinion on the #s first.

The house was built in 1978 and I got the ARV from the mls. I looked at similar houses that had been rehabbed and took $5k off their asking price to come up with the $85k.

Thanks again for your input.

Asking price: $39k
Rehab: $15k
ARV: $85k +-$5k

On paper this looks like a good one, but I am a little scared because it's my first flip. I am paying cash so this should minimize some fees.

I also want to ask what should I offer? Is there a certain % you guys use to make your offers, like %80 of asking price?

Thank you for the info...