just looked at this property today. 3BR 1.5 bath, RR, 2 car garage. Intention is to Rehab then Sell. 4months
Listing price is $112,900
repairs 7k, paint, carpet, tile, some trim, etc. i have good general laborers
houses in this neighborhood sold from 112k to 140k.
avg. days on market for area is 32 days.
ARV is 123k.
I plan to offer 80k
80k pp
7k repairs
1,200 holding cost
6,200 payment on loan after 4 months
8,400 realtor fee to sell and closing cost
1k loan apprasial, etc.
sell price 120k
profit $17199
pre-approved for a conv. loan at 7%, using HELOC at 7% for down payment and repairs.
I believe i have everything straight. repairs should take less than 30days. Comments plz, to make sure i have everything in order before my first rejection thx
The first thing I notice is the rejection you are expecting. Totally negative. Envision you will get the deal and see yourself fixing and selling the property for a handsome profit. We do not get everything we visualize but if we did then I would prefer a done deal and not a rejection notice. If all your numbers are correct you could counter offer another $5K to $7K and still end up with a $10K profit.
Darren,
Have you figured closing costs you may pay on your loan or is this a cash deal. Have you figured in for closing costs or concessions you may make. I would certainly figure at least 3 months on holding costs. Good luck. David Graham
yes i have, I have a 90% conventional loan plus my HELOC for down payment and repairs. I included 4 months of holding host + realtor fees, closing cost, repairs, buffer, etc. Broker said house was pending after i sent in my offer btw. Thanks, I’m trying to figure out how much to bid over the asking price on a HUD home atm. see my HUD post.
thx