Deal Too Skinny? Please Help
Looking to rehab and sell-
Purchase price: 158,000
ARV: 210,000
repairs:20,000
after I also factor in 6,000 in holding costs, 3,000 closing costs, and 6000 in selling costs, my profit margin is only somewhere near 10,000. And that's IF a lot of things go right and few go wrong. This would be my first rehab, do I seem to be calculating right or am I missing anything? This doesnt fit the 65% rule or even 70%, so I am guessing a HM lender would not touch this, right?
Unfortunately for my area, this is actually one of the better deals Ive seen.
This deal seems too slim for my taste... Maybe you could purchase it from the homeowner for good terms and then lease option it to a handyman as a handyman special... Let the handyman build sweat equity...
Is that an option for you?
Good Luck!
[addsig]