How do you Analyze without getting burned!
A. The Biggest Mistakes are: Not planning for Lender costs, forgetting other holding costs, under estimating Rehab budget, Over estimating your After Repair Value, and Napkin analysis (not doing the math correctly).
B. How to estimate rehab costs like a real champ: Do a detailed walk through with a Video and talk about it, record it and or write it down. Divide it into catagories, get bids or go to Home Depot or Lowes, so when in doubt ask the Home Stores.
C. Rule of Thumb; 70% rule using the quick and dirty rules; Purchase price times 70% AFR (after repair value).
D. How to analyze a Fix & Flip; After repair Value, sales closing costs, holding costs, rehab costs, financing costs, purchase closing costs all = Pre Tax profit.
These tips should help you analyze a house flip opportunity and save yourself from a financial disaster.
Happy House Hunting,
Contact me for more tips… Donna Bishop Realtor at Jones & Co. Realty 239-560-3149 or firstname.lastname@example.org