Check with the current city codes to make sure they issue you a permit for enclosing the garage and putting a car port up. My city just recently passed new codes that won't allow for new car ports and require the home to have 2 garage spaces. I'm guessing the home is either in north west Lubbock inside the loop (4th-19th) or inside the loop in south Lubbock. I flipped a home on 10th street inside the loop and did exactly what you are describing (8 years ago) and created the necessary value. One difference was I made a master suite and bathroom out of the garage. I think your renovation budget is pretty tight and you would have to hope there aren't any surprises. As the buyer from you I have to factor in costs for loan closing fees and points. Realtors costs for the sale ($7800 at 6% of $130K), insurance, holding costs, utilities and electrical and have a buffer for unknowns. If you were to wholesale the deal at $78K (your $5K finder fee), my costs on the back would look like this. $1,500 - $3,000K in closing, $1500 in insurance and Utilities, $5200 - $7500 in realtors fee on sale, $3200 in interest payments for 4 months at 12% and $2400 in points paid on a hard loan, I would put the repairs closer to $20K so all in before an oh crap buffer I am at $110K - $115,600.00. I don't believe you can expect this home to sale at a new home construction per sf price, so I would say if you split the middle and went $85 per sf you are only at $119,000. Not enough money there to manage that risk.
