Is This A Good Deal 1st Rehab Project
I found a 1500 sq ft brick ranch in a neighborhood where the homes normally sell for $120-$140K - It only needs updating about $11K in work I should be able to buy it for around $82-$85K -
Also, what is a good rule of thumb to get the home turned around to sell. I was thinking about 30 days to rehab and 30 to sell. Is that realistic? Homes usually sell fairly quickly in this neighborhood.
Based only upon what you are posting here, and using the most optomistic of your ranges, it sounds like you should by 10 of them. I can do simple math and 82k + 11k = 93k, doubling your costs for the hell of it is 82k +22 k =103k.
140k minus 103k = 37k in profit.
The question is how close to the optomistic factors of your post will reality prove to be? Nobody here can guess that based on a few sentences you posted.
Personally I would never use 30 days to sell as realistic no matter how 'fairly quickly' you think homes sell in this neighborhood. I would give myself 6 months no matter what. I look at worst case scenarios, not best case when it comes to investing.
Yep, recent deal IMHO. I purchased a house for $82k, spent $25k rehabbing, and sold for $140k. So, if you're confident that you can fetch at least $125k for your house, go for it. Even if you don't make as much money, you'll get your feet wet.
The math looks good, but realize that once you get a contract, many lenders take 30-45 days to close. Rehab is up to you, but figure 90 days minimum to list, put under contract and close, assuming everything else goes your way.