Hi all!  I’m looking at purchasing a flip.  Purchased my first rental about a year ago but no good experience with a fix n flip.  I want to purchase this property, but need the most efficient way of estimating renovat...

$15-$20k is a good assessment of repairs to factor in as that is what our average, if not a little more always ends up being.  

I asked a few questions and received the responses below: Should I expect an addendum outlining the final list of repairs...? 

Derrick and Daniel, my General Contractor company, Property Pro Services, LLC could provide you with investor repair, renovation and remodeling services. 

Jesse for mortgage help and Paul for credit repair/tenants screening. 

Total Insurance Estimate $ 262.50 Current rent $ 800.00 $ 9,600.00 $ 10.40       $ 21.88 Less: vacancy allowance - 10% $ 40.00 $ 480.00         Net Rental Income $ 760.00 $ 9,120.00   Property Taxes 2.5264% $ 505.28 Plus: Other Income $ - $ -         Total Income $ 760.00 $ 9,120.00 $ 9.88                 EXPENSES         Property Management $ - $ -         Repairs & Maintenance $ 100.00 $ 1,200.00         HOA $ 250.00 $ 3,000.00         Advertising & Legal         Insurance $ 167.00 $ 2,004.00 $ 2.17         Total Expenses $ 517.00 $ 6,204.00 $ 6.72                 Net Operating Income (NOI) $ 243.00 $ 2,916.00                 Less Debt Service (PI) $155.06 $ 1,860.72 $ 2.02         Less Property Taxes $ 42.11 $ -                 Net Cashflow $ 45.83 $ 1,055.28                 Operating Expense Ratio 68.0% (Total Expenses/Total Income)               MORTGAGE INFO         Total Loan Amount $ 20,000         Type of Loan Seller Financed         Term (Months) 240         Interest Rate .07         Down Payment $ 2,000 10.00%         Monthly Payment (PITI) $155.06                 Purchase Price $ 75,000         Closing costs $ 3,000         Rehab $ 7,000         Total initial investment $ 85,000                 LTV 27% Loan Amount/Purchase Price         Cap Rate 4% Annual NOI/Price         Cash-on-Cash Return 146% Annual before-tax cash flow (i.e., NOI)/Down payment    

Also, with syndication/crowdfunding, can generally afford to invest in much more expensive/higher-quality properties because the investment is pooled with many other people… Rather than having to afford the property all by yourself.

Quality cost money.

I have liquid money but would like to not rely on (or use) that too heavily in the case of vacancies, unforeseen repairs and things like that until I can save for those types of events.

Depending on what you are looking for, I buy my cabinets at either Hoods (cheap, and good quality/style and available for pickup that same day but, not super high-end) or Cabinets To-Go.