Thursday, October 31, 2013

Let's buy a renovation project

I’m so excited.  Beau and I put in an offer on a townhouse.   It’s a court sale so I’m not sure when we will hear back.  However, here are the numbers if we get it at the price we want.

$215K purchase
$20K renovations (the townhouse is similar to Mom & Dad’s townhouse we just renovated)
$15K for Realtor fess, lawyer fees, etc.

Projected sale price $290K based on two similar listings in the same complex listed for $300K.  One is conditionally sold.

Projected profit is $40k.  Respectable.  Also, if some things happens to the market and we cannot sell, the economics still works out to hold this as a rental unit.