All Forum Posts by: Danny O'Bannon

Realized I didnt even include my rehab costs... $14,000

Here's the numbers for my flip I just picked up:

Purchase: $58,000

ARV: $118,000

Profit: $32,000

Does this look realistic. I am basing the rehab off the following cost with an Estimated hold time of 6 months:

Carrying cost: $4,930(Hard money loan at 11% & 3 points.)

Property Taxes: $708

Utilities: $1,200

Insurance: $600

Sale Closing Costs: $401

Excise tax: $21,000

Recording: $177

Warranty: $70

Deed of Trust: $70

Title Insurance: $625

Listing Agent Commission: $3,540

Buying Agent Commission: $0 (Off market deal)

Am I missing any important costs? I feel like my closing costs for the buying side isn't included in that. I am paying both buyer and seller closing cost. Assuming ARV and Rehab are accurate, can I really expect to make an estimated $32,000 on this deal or am I leaving out some other cost I will incur. This is my first rehab and I cant stop starring at my spreadsheet trying to make sure I am on point. Thanks in advance.

I started out as a wholesaler and that is my main focus. I am now rehabbing and will eventually acquire rental units. I got my license to help aid in my ability to find and analyze deals. However, I have no intent to list homes or do any of the traditional agent strategies. The more I have learned about the liabilities as an agent , the more I consider getting rid of it. I do a lot of direct mail and that alone requires certain disclosures to the point where I feel it could reduce my response rate significantly. I can gain access to the MLS other ways, and feel the risk (liability) may not be worth the reward. Should I drop the license?

All associated cost are accounted for. My contractor and I haven't dialed in all each cost but the 10k is what we figured. I'll have that Convo with him today. Thanks for the insite

it's an off market deal. Landlord retiring and just cashing in. It really is a light rehab. Carpet, paint, counter tops, add a bathroom down stairs, add egress window, exterior paint is good but going to paint the trim, and tile flooring in the kitchen.

Thanks for the responses. I got the purchase price down to 58k. I'm now budgeting a 10k rehab and for sure adding a bathroom downstairs to make this a 3/2

I started out as a wholesaler in February and have since done 5 deals. I got an offer accepted recently and I figure it would be a good first rehab for me since its only cosmetic. Here are the numbers:

Purchase price: 65k plus I pay buyer closing :/

Repairs: 7k

ARV: 110k

Hard money loan will finance the entire purchase at 3 points and 11% interest. The points are going to be rolled to the back end but I will have to pay closing costs and repair cost out of pocket. Based on these numbers I'm seeing about 17k in profit assuming 6 months from close to close.

I'm waiting on CMA back from my agent to see if ARV could potentially be higher if I add a bathroom downstairs and or make the down stairs egress since its currently a non egress bedroom. So as it sits its a 3/1 with one bedroom non egress.

What do you think about the numbers and also what is your experience with making a downstairs bedroom egress to increase value

I also market to "vacant" but my vacant lists consist of me driving for dollars. I am not away of away to find these list other than that. Lastly, I cant seem to get ahold of tax deliquents or code violations in my county so thats why I am resorting to targeted homeowners.

I have searched all throughout bp and cant seem to find any topics that have really touched on this. I'm looking to start mailing to more targeted list. I currently do absentee, inheritance, and pre-foreclosure, expireds, and EDD. Id like to add certain targeted list and wonder which lists I can come up with. For example

-owner occupant 65 or older

-owner occupant 40% plus equity

-?

What are some targeted list you mail to and how do you go about finding these lists? I know there are title companies and companies like realquest and listsource, but what is the criteria you need to pull these lists?

Thank in advance and happy hunting!