All Forum Posts by: Gabriella Borukhov

 what do you think if I can negotiate price down to 340,000?

Yes, A huge reason of why I calculated that ARV is because it's in the city of Sarsasota. Right next to downtown and I feel like those properties are more expensive. Its also on a 14,000 sq ft lot. I would love to hear your additional "two cents". I will send you a message.

 It's in the city limits of Sarasota. 

I finally decided to invest in a fix and flip. Everything was making sense until I had a bunch of people around me tell me it's a huge risk. Now I'm so scared because I don't want to lose money and have a bad experience. It is my first flip and it is quite a "bigger" flip but the numbers made sense to me and wanted to know what some of you experienced investors think. 

Some details about the property. It is about 1900 sq ft. It is located In Florida.  Owner died and house has been vacant ever since. There was a probate. I did get a inspection done. Roof was done 10 years ago but there were some leaks identified so inspector recommended that I change the roof. It's on a block lot, no foundation issues were identified. HVAC is updated. Plumbing looks good as well. (Water ran for about 6 minutes). Electricity is good as well. Only issues that we have identified that we need to fix are cosmetics. Completely renovate the kitchen, 2 small size bathrooms, floors all over, "freshen up the windows" (windows were pretty old but contractor said we might not need to change them), cut off tree branches on top of the roof, add a walkway in the front. There was some termite damage on the fascia as well. Also, rodent droppings were detected.  

Home price is $369,000 

Rehab given is $80,000 

Down payment is $44,900 

Loan amount that I will owe back is $404,100 

Loan is for 6 months 

Holding cost for full 6 months is ($3500*6) = 21,000

Closing cost = 19,553

ARV = 575000 (my agent said $600,000 but I am doing 575,000 to be conservation, with the way the market is going I do question if I should estimate it lower)

With my math, using the full rehab loan and full 6 months with selling costs included, I estimate around a $53,000 profit. 

If I finish and sell faster, even better. 

This is definitely a lot to take on for a first time flip but I did put $10,000 earnest money down already and don't want to lose that. With all this information about the home, do you think there is enough of a profit margin to work with? It has been vacant for a couple years, do you think that there might be additional problems that will skew my numbers in a large way? Is 80k enough for a renovation this size ? My biggest fear is that there may be a huge issues that arises that prevents me from being able to sell my house. It could just be fear talking. Also, my backup plan may be to do a cash out refinance and leave some cash in the house but not 100% sure what the best option is yet. I would greatly appreciate advice and opinions. Would these numbers make sense to you and is there anything that I may be missing?

 Hey Jack! Thanks for the advice. I haven't had a contractor walk through the property yet. I did have an inspection however and was quoted quite a different price than what the contractors told me so I am going to try to schedule the contractor to walk through the property with me on Facetime. As someone who is experienced in the industry, do you value the option of an inspector more than the contractor, or vice versa? I've been told by my agent that a lot of inspectors aren't used to distressed properties and should listen to my contractor instead. What do you think? 

 Hey Kyle! 

Thanks for the advice. It is a property that is quite far away from me. Can I ask why they take longer if it's far away. It is a place where I vacation at often so feel comfortable enough to know the areas. But I won't be physically there. Do you think this would be a disadvantage and is there a way I can work around it? 

I just bought my first purchase with them. Read through the bad reviews and it deff scared me but the numbers made sense to me on this deal so we shall see. 

So I was offered a new western deal .. and before anyone says anything. I have read all the reviews about new western so I am aware that I should have avoided them but they made it really easy for me to understand everything and after running the numbers, the deal really made sense to me. Now I never saw this house in person, and I've never done a fix and flip before so I am quite unaware of what to look out for. I've had a contractor give me their estimate and I've worked out the lender fees. Is there anything that I need to look out for that could potentially ruin this deal? I've been saving up for a long time for this and want to minimize as much risk as possible so I would like to be prepared. From past experiences, please let me know what I need to look out for when it comes to flipping a home. 

I'm aware that you have to register for a license to operate as a short term rental. It's not too far from the Scottsdale stadium. It's near Vista del Camino park. The lease starts next week after I sign the contract. How did you do with your airbnb? Would you recommend it? 

I've been given the opportunity to rental arbitrage a 4 bedroom house, 3 bathroom, 2 kitchen and living area home in Old Town, Scottsdale, AZ. The rent is $3450 with landscaping and pest control included. I would have to be responsible for other utilities. There is no pool BUT there is a putting green in the backyard. As I am searching online, it looks as if it's very hard to get bookings for AZ. According to airdna, the unit will rent out for $400 but when I check on airbnb, there is a LOT of competition and these places look amazing with a lot more amenities like a pool/hot tub renting out for the same price.. while I believe that my unit has A LOT of potential, I am a newbie and am getting concerned that I will lose money on this deal. I live in NY so will be managing remotely. Is this a good deal and what can I do to minimize risk?