Is this too big for a newbie with little cash? - Posted by Heather

Posted by JohnBoy on February 15, 2002 at 15:45:11:

Once you verify the rehab costs then just get it under contract leaving plenty of profit for another investor, including yourself, and just flip the deal to them for a fast $5k - $10k profit!

Then you don’t need any loans or have to worry about holding costs. Just put up about a $100 earnest deposit and flip the thing! Then assign your contract or set up a simultaneous closing, depending on how much profit is involved for you to make. Then you’re in and out with a quick profit!

Is this too big for a newbie with little cash? - Posted by Heather

Posted by Heather on February 15, 2002 at 15:32:56:

Hi all,

Here’s the deal:

The house is located in a VERY desirable Charlotte, NC neighborhood, average time on market is 72 days. Over all sell average for the neighborhood, once rehabed, is 177,335 and the average for the comps (about 1,200 hla, 2/1) is 164,000,again after rehab.

The house is listed at $104,000 but think I could get it under or at 90,000. Waiting on rehab estimate to come in, but shouldn’t be more than 10,000, if that. Really depends on if the kitchen is gutted and redone, other than that and the roof, it’s mostly cosmetic that I could do, but would need financing to do it.

Here’s what it could use - a privacy fence, deck, landscaping, pull down a tree, refinsh hardwoods, pull out drop down ceiling, new windows, new kitchen, and conversion of a weird room off kithen into a mud/laundry room and other half into an office. And of course other misc…

I really think there is a bunch of $ to be made off this but I am finding it hard to come up with financing. I’m working on a hard money loan right now, but I’m a bit worried about the closing costs and $ to hold it while rehabbing. I can come up with about 10,000, but that’s it and it’s not seasoned.

To make matters worse, my credit score isn’t great, around 620, but most of it is explainable ie - will be followed with docuementation of why it shouldn’t be counted agaist me… In addition, my debt to income is pretty high. I plan on using 50% of the profit to clean up my debt and reinvest the other 50%, if I ever get there!

I’m beginning to think I should maybe drop this deal and find a smaller one.

I’m pretty much open to anything - would anyone want to take me and the house under their wing and make some money? I don’t mind sharing - the knowledge I could learn would be well worth it.

Any advice is much appreciated!!!


Are you sure on those rehab costs? - Posted by Nate(DC)

Posted by Nate(DC) on February 16, 2002 at 22:37:21:

Roof, kitchen, windows alone could easily eat up 10K - if not more depending on what exactly you do. Then that doesn’t even account for the rest of the stuff.

Not saying not to do the deal, just check your figures. If you are a “newbie” get someone with more experience in estimating construction costs to help.


Re: Is this too big for a newbie with little cash? - Posted by tylerm

Posted by tylerm on February 15, 2002 at 15:48:30:

Heather, I’m a RE investor in Charlotte. I would welcome discussing a win/win situation for both of us. Email me at