The deal looks a little to tight for a flip but good for a rental property. In nj you have to be careful with your flip estimates. Labor is expensive and I know you say you’ll do it all yourselves. But it’s hard to juggle work, flips, life. You’ll want to hire out some of it and if you don’t budget for it you’ll get snagged.
I shoot for 20% of my arv for my flips. So if arv is 600 I want 120k profit. It gives me enough room for the unexpected.
Just got caught on a flip with an unexpected roof damage on a flat roof. Now I have to add beams and structural walls then sister the joists and redo the roof. Total of 15k that we couldn’t see during inspections.
and I have 15 years of home renovation experience and I’m electrician who’s been doing flips for 10 years! So you can have all the experience but if you can’t see behind walls.
If your arv is 500 you should look for a home in 200-250 range. It’ll give you a ton of room to play with. 6 months also puts you at Christmas time which is a tough time to sell. So that’s 3 more months of holding for spring market.
Also in 6-9 months we could be in a totally different market. If you are gonna do a flip now be sure it’s a simple cosmetic flip and doesn’t need anything major.
If you ever need a second set of eyes on a walk through reach out to me. I have no problem walking it with you guys. It’s good market research for myself as well. I’m in northern ni as well.
