Hello, some lady call one of my bandit signs she said she has this houses that she want to get rid of ,so i ask her do the house nee any repairs she said it need some drywall upstairs and down some outlets needed to be fix new down spouts and gutters outside paint 2windows she said the basement was wet so i look up the comp on find comp now they say the arv is 10,040 .can this house be flip :help
Hi, I’m still in newbie stage so take my advice with a grain of salt. But I’m sure you can do something with the property. Find out what the value of the lot itself is. Definitely go see it to get an idea if it’s a tear-down project or could be rented after some repairs. If ARV is 10,000 you might be able to score it for 1000 or less. I’d buy for that much depending on outstanding tax Liens and such…
Depending on how much total repairs are, plus the current value of the property and how much the property can be sold for will let you know if this is a possible deal.
From the facts that you have given here. It seems like the spread may not be that big to pursue.
Make sure you are sure of yourself before you contract the property with the seller. The last thing you want to do is contract the property with the seller and you can’t close on it for whatever reason because you can’t find an end buyer. It’s better to be safe than sorry!
Hope this helps :smile
Rather than relying on some outside comp service, why not go and check out the property for yourself and then you will have a better idea of what you are dealing with. Once you have an accurate square footage number, you can comp the place yourself. The local assessor can help you out or a real estate agent that you have done business with in the past.
The key here is to first figure out what the market value is after repaired. Then accurately calculate the repair costs, holding costs and closing expenses. From there take out your profit margin and that will give you the asking price.