Below are the numbers he gave me on the house.Rambler3 Bed, 1 Bath, 1069 Square Feet, roughly .25 acre lot, Occupied housePurchase Price: $141,000Renovation: $25,000Finders Fee: $0 (waived if I took it that day)Resell: $205-$215 (depending on finishes)Offered to sell it for me for freeSo here is the initial numbers I put together.Purchase Price: $141,000Renovation: $35,000 (I always add onto the number they give me, just to be safe)Closing Cost: $15,000 (7%  3% to buyers Agent, 1% to selling Agent, 3% closing cost)Holding Cost: $11,700 ($2,700 [points], $1,200 insurance, $7,800 for 6 months of Interest)Potential Profit: $12,300 (plus we finance our own renovation and pay ourselves)This is what it looked like:Next Post I will explain and show the demo/design and how we planned to add value to increase profits

Be aware of things like condo rules regarding investor owned versus owner occupied units as this could effect your or your end buyers' financing possibilities, special assessments or association fees that could effect your carrying costs, condo rules regarding renovations and what owners are allowed to do or restrictions on noise or work hours.

Considering my job was basically to get a property ready for market (clean out/fix, get appliances, full occupancy, etc) I assumed the only SOLID way to get accurate appreciation was physically adding value to the property (renovations, etc.) and increased rents.

My plan is to refinance to 5 year arm or 30 fix once the renovations are complete.  

Mostly, these buildings are well maintained and many investors see this as a “value-add” investment opportunity because through renovation and common area improvements, the property can be upgraded to Class A or a Class B+.

They do full renovations and give free estimates.

I am renovating a SFR with a hard money loan and about $25k of my own cash. 

The FHA 203k renovation loan program provides funds for both the purchase and renovation of a home packaged into one mortgage loan.

thanks for the reply @ryancoleman I am planning to have roughly around 5k to either deposit and or put away for future expenses my budget for the house with renovation expenses will be between 100k-130k depending on how much I'm approved for with this budget  I would still be able to manage the mortgage by myself in case of any vacancy rate. unfortunately from what I was told with the 203k loan I would not be able to receive any down payment assistance which is why I am juggling between a standard FHA and receive assistance or 203k and receive renovation $$

Be sure to get a scope of work for what renovation was done, and of course, always get a property inspection.