All Forum Posts by: Cheryl P.

@Rafael Reynoso I have attended Traction REIA as well and while they do have guest speakers and there is up sale, it is still a good opportunity to connect with local investors.

My goal is to do 1 flip each quarter for the next year to build up my cash reserves.  I need to find (1) a experienced investor to help past this first deal and (2) a great general contractor to assist with ensuring I am properly estimating repair costs.

I don't know if I should be encouraged or discouraged by this post and comments regarding the NOVA market. I am still trying to build resources and more courage to do my first flip, focusing on Fairfax County markets. This past weekend I focused on looking at vacant properties on the code violation list, using the old worst house in a great neighborhood.  I am in the process of tracking down the owners.

Here are numbers on a couple of vacant houses, I know the cost estimates are high as I have not seen the interiors and exteriors of some indicate some extensive rehab will be required and I'd rather overestimate than underestimate costs.

Property 1 (4 bed/2 bath,  1224 sq ft)

All brick house, online photos of inside show it has been demo down to studs (neighbor told me someone installed drywall about 3 months ago, but no one has returned since then.)  Mailbox is packed with old mail, this was not on my original list, it was total drive for dollars find:  

ARV: $534,133

Required Minimum Profit: $25,000 (to meet my 1 year goal of $100k reserves)

Repair Cost: $80,000 (large contingency)

Realtor fees @ 6%: $32,047

3-4 Month Holding Cost @ 10% (if I use hard money): $53,413 

Closing Cost @ 4.5%: $24k

MAO: $319,635 (target cash purchase price $300k to $309k)

Target Re-sale price: $530k to sell quickly 

Property 2 (3 bed/1 bath, 1031 sq ft):

ARV $335,000

Required Profit: $25,000

Repair Cost: $80,000 (large contingency)

Realtor Fee @ 6%: $32,047

Holding Costs @ 10%: $33,000

Closing Costs @ 4.5%: $15,075

MAO: $161,325 (target cash purchase price $160,000)

Target Re-sale price: $330,000

It's a goal :)