All Forum Posts by: Derek Moore

@Derek Moore

Ok.  So what does your Cash Flow analysis look like?  Is it currently rented? Is the projected $800 - $900 Rent per or total?  If per unit the Cash Flow should be pretty good.  Of course the real concern is apparently tenant quality it seems.

@Derek Moore, 10 minutes which direction? Most of the area around the university is a neighborhood by neighborhood situation so you should know what you are getting in to. If you are out by Westcott or even Salt Springs area that could be worth it (actual numbers notwithstanding to a degree) but there are a ton of houses for sale under $10k just to the east of 81 and on the north side that are not going to be worth the effort. 

Also take in to consideration the feedback have you gotten from other investors. If they are experienced and local but it is too big for them then maybe a sign. Find a $50k house that needs $10k of work and bite off something a little smaller perhaps.

I would agree with @John Leavelle on the low profit margin, too. If you need a roof (which is almost always the case), you are looking at $6k right there. Good luck and hit me up if you have any questions. Happy to help out.

Howdy @Derek Moore

If this is a Flip the numbers are not good.  Depending on the cost of Rehab it may even be a negative.

$70K x 70% = $49,000 - $25,000 Purchase price = $24,000 Remaining for Rehab, Holding and Closing (2 closings) Costs.  That gives you $21,000 profit if you can meet these numbers.  What is your estimate for the “gut job”?  The closing costs will probably be at least $6,000 for both (if you have to pay for both).  What is your estimated timeframe to complete the Rehab and sell the property?  That impacts the Holding costs.  How much (little) profit are you willing to take?  What is the selling market like in that area?