4 bedroom 2 bathroom house in Clearwater. 1800 square feet. Pool with large enclosure.
This makes the almost perfect flip house because of it's size, number of bedrooms, and pool (amenities). I say "almost perfect" because we generally would like it in a hands down gorgeous neighborhood and this element is missing. It needs lots of work, including a roof, new flooring, paint inside, siding and repairs on the exterior walls (because they are wooden). Our team came up with a ARV (After Repaired Value) of $125,000 based on sales in the exact neighborhood. This is a purposefully low estimate to account for $5k in negotiations.
Right now, the house is listed at $75,000 but can be purchased for less given the lengthy time on the market.
We want to make $20,000 profit on this so you take the $125k ARV - $20k profit to get $105,000. Next we need the cost of repairs which we determined would amount to a conservative $25k. We're now at $80k and we still need to account for cost of sale (realtor and closing fees) and interest on money being used to purchase it: $15k. While it almost never works out to be the exact asking price, this house works with a reasonable offer. To give ourselves even more cushion, we would want to offer close to $60k to start and hope to end around $65k to cover incidentals.
Check the house out here:
http://www.movoto.com/clearwater-fl/2130-catalina-dr-clearwater-fl-33764-431_u7615425/
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