ok- I’m going to throw together some quick numbers for you guys on this new deal in the West Valley. These are rough estimates, but, if you’ve done deals in the past, you’ll see it’s fairly accurate.

Let’s say this Investor flips the deal to you at $130,000 (remember, it appraises for $210,000 or more). Here’s how I see the numbers playing out.

You’ll list it on MLS for $190,000. Yes, it’s worth $210,000, but in this market, you want to list it cheap to get them to sell fast!  This is NOT the market to get greedy in! Here’s some figures…

    $190,000  - Sales price on the back side
    - $11,400 - Realtor’s Fees (assuming you pay a full 6%)
   - $2,500 - Title/Closing Fees (again, over estimating)
   - $10,000 - Rehab/repair costs (paint, carpet, etc)
   - $12,000 - Holding Costs (using Hard Money, credit cards, utilities, etc)
 
Sub-Total = $154,100.  Take out the $130,000 you paid for the property (maybe another $2k in closing costs on the purchase) and you get…

$24,100 NET PROFIT

Now, doesn’t that sound decent? Not too shabby for one slam dunk deal. Or, you can hold it as a long term rental for easy cashflows. There’s soo many ways to work deals, it’s not even funny. Contact me if you want to pick up some deals yourself.