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.

Comments(1)

  • mattfish114th January, 2005

    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]

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