Purchase Price 32k
Repairs 25k
CCs 2k
Insurance 400
Taxes 1750 a year
Utilities 1200 a year
Sale CCs 3k
ARV is 80k
My estimate shows that the property will make between 18-11k depeding on how long it takes to rehab and sell. Do these numbers look right and would you do this deal?
Nick
If I could get a house ARV$80k for fix up and repair of $57k my analysis of the deal would continue assuming I am going to buy it. The next thing I need to know is what are you going to do with the house rent it or sell it?
The plan is to sell it after its fixed. Properties in the area only rent for about 6-700 a month. With refi, taxes, maint, it wouldnt be worth holding.
If you rented it for $600 month, your PITI on this would be around $400. This house will cash flow between $150 and $200/month. I don’t knwow where you are but that passes my sniff test. I would buy it make sure I keep the rehab expenses in line and buy the other 10 more just like it and have about $20,000 per year worth of passive income on my hands.
as a rental, you might break even. You must figure in repairs, vacancies, capitial cost, etc. IT could work, but there is a whole lot of more to landlording than PITI.
As for a rehabber, it also looks thin. How sure are you of the $80k; what if you ahve to take $72k Also, you have no selling cost; planning FSBO? have you done this before? I also noted repairs at $25k. Is that a guess or do you have a solid list? Have you had it inspected? one item like a bad fuannce or roof could blow that estimate.
There is some potential there, but not a clear winner in my book.
Thanks for the replies. I agree its not a good rental.
As for the repairs, a new furnace and new roof are included in the repair list. The furnace repair amount is from an HVAC company, and the roof is from someone I trust, but not a roofer. The rest of repairs actually only totals about 20k (kitchen, bathroom, paint, drywall, etc), but we added in a few extra k for cost overruns.
As for when we sell, our plan is to sell FSBO. While neither I or my partner have done it before, I have family members who are agents, so they can help me get things going.
Nick