First time Flipper (Jacksonville, Oak Point: for sale, lease, mortgage)

[Shayshay3217]

Hey Everyone,
I am thinking about purchasing my first flip. Very exciting and scary!

The house that I currently rent is up for sale at a good price and I thought hey why not buy it and flip it in a year since I have been wanting to flip a house for a while now.

The asking price is $97,500. I live in a nice area and the home is located in a cul de sac in the Oak Water community of Jacksonville, zip code 32225. It's a one floor town home with 2 bedrooms, 2 bathrooms, 1226 square feet.

I would like to do some upgrades and of course and have thought about those unforeseen circumstances such as repairs.

I have also compared homes similar homes in the area and the selling range is about 120K-135K.

Again this is all new to me and I have been doing some research but would like to hear from other people who have flipped homes before. I want to make sure that I am making a smart decision.

Thanks in advance.

[projectmaximus]

What exactly is your goal from this? Gain some experience? Make money?

This is a tricky situation because it doesn't seem like a typical house flip. If you were just a regular person looking to get into the game then it would be more black and white and depend strictly on the numbers. It does seem like it might be a good deal...need to be more certain about repair cost range and after-repair value. And being new I would urge you to be cautious with your numbers.

It's a little different since you already live there. You presumably know the house and neighborhood better than most buyers would, and it would be a live-in flip so your purchase would save you from paying rent and it would also prevent you from potentially being kicked out at the end of your lease. Some things to consider: what would your mortgage payment be vs your rent? Would you be happy living in the house if it turns out you can't flip it for the price you want?

Again, the fact that you live there and plan to continue to live there makes it more feasible than if this were a strictly business transaction. There's some potential here based on what you've stated/implied

[EricBoyd]

70% ARV is a target purchase price that I was taught was reasonable for a flip.

[projectmaximus]

Originally Posted by EricBoyd

70% ARV is a target purchase price that I was taught was reasonable for a flip.

No, 70% ARV is the target purchase price + repair costs. Very important difference.

[EricBoyd]

Originally Posted by projectmaximus

No, 70% ARV is the target purchase price + repair costs. Very important difference.

Sorry, my reply was poorly worded. 70% ARV is where I should have stopped. LoL

[projectmaximus]

Originally Posted by EricBoyd

Sorry, my reply was poorly worded. 70% ARV is where I should have stopped. LoL

I mean personally I'll sometimes go as high as 75% but I've got to be very confident in my numbers and have a severe lack of deals available.

[EricBoyd]

I could not find the OP’s subdivision on the MLS, by the way.

[mooksmom]

Ever see the movie THE MONEY PIT?? Watch it and then decide. If you cannot DO most of the repairs yourself find another "hobby".

[Shayshay3217]

I will check out Money Pit. I am looking at this as more as an investment. I would like to invest in more properties eventually when I have enough capital

[Shayshay3217]

Sorry its called Oak Point! 32225 is the zip