First Deal Signed - Posted by KD

import · November 17, 2003, 1:03pm

Posted by craig on November 17, 2003 at 16:07:39:

seems like a lot of work is needed, but also a lot of equity. Do you have estimates for all the work? Do you have contractors lined up? New roofs are VERY expensive. It seems like a great deal though, so for your first time, I would flip it for a good chunk of cash. Always start your first deal successfully. Good luck to you.

import · November 17, 2003, 1:03pm

Posted by KD on November 17, 2003 at 14:03:46:

I got my 1st deal signed yesterday, Comps $180K, purchase price $90k needs $10-15K worth of work. 30 days to close. Should I try to flip for $25K or rehab and sell for $165-170K

Here are my numbers
$180k comps / arv

$90K Purchase Price
$10-15K rehab,
$5500 pts on line of credit
$3500 closing cost Buyer & Sellers
$5600 6/mos holding cost
$2000 / misc
Total $31,600
House is 3/1.7 1375sq ft, lot is 1.36 acres (Perris Ca)
needs paint in/out, kit & bath repairs, landscaping, floors need to be re-done, garage door replaced & drywall repair, windows & doors replaced, needs new water heater, roof was done in 95 but had water stains on interior celling.

All advice & comments appreciated
KD in SoCal

import · November 18, 2003, 10:49pm

Re: First Deal Signed - Posted by Neill

Posted by Neill on November 18, 2003 at 23:49:35:

I agree with the others. Flip it. If you double close, remember the CA. 3.3% withholding tax… figure that into you costs. If you assign it instead, you might be able to avoid this. (I’m not a lawyer, so don’t quote me).

import · November 17, 2003, 8:42pm

Re: First Deal Signed - Posted by Paul Jazwierski

Posted by Paul Jazwierski on November 17, 2003 at 21:42:25:

WOW,

That is some deal for a first timer!!! Personally I would flip and never look back. Rehab is hard work, and the time, money and agrievation that you put into it not worth it. If you calculate it out you will be working for $20/hour with all the time that you put in it. Flip it and your $20/hour goes to $200/hour. Time is our most valueable resource, not money.

import · November 17, 2003, 4:00pm

Flip and don’t look back - Posted by Kevin IL

Posted by Kevin IL on November 17, 2003 at 17:00:55:

Congrats. Sounds like a good deal. My first deal was a rehab. I bought it at 45% of ARV. Almost ran out of money rehabbing it and the profit margin dwindled quickly.

I vote for flipping and using your profits to pay for more marketing and education. Having the money in hand is a great confidence booster. Good Luck.