Does This Deal Make Sense Numbers Wise?
I am buying a bank owned property for 14,000 including all closing costs. Needs 22K worth of repairs from soup to nuts to make it a brand new looking house. The ARV value is 55K. thats a 19K profit minus closing costs. Would any of the experienced rehabbers here consider that to be a large enough margin and does anyone have any creative ideas on how I can sell this house quick?? Any help would be greatly appreciated, thanks!!
I am guessing this property is NO WHERE near freeport NY based on its price 17-19K profits on a property costing you 36K out of pocket is appx 47% ROI. If i can make 19K on a property 5X that price id take it and run.
Ideas on how to sell it quick? I only can think of the basics, list it with a realtor , although that will eat into some of your profits..A great idea maybe rent it out before you sell it, some investors love the idea that its occupied and already bringing in cash flow! There are numerous ideas you can come up wiht and im sure others on here will shoot you a few. Good luck
Hi Sham,
Hey neighbor, thanks so much for the response.You are correct, you cant even get a closet in Freeport for 36K. I do my real estate investing in Niagara Falls, NY. I will take your advice and move forward with the repairs. I will try selling it for at least a month FSBO, then list it with a realtor.
Sounds like a great deal to me! Go for it and good luck!
I agree, good deal. Never look profit in the face. Get in and out of the property quickly and move on to the next deal. Great Job
Thanks so much for your advice and encouragement, I am on my way to making the bucks!!