Off-Market Gem

@brrr_beth

Equity 73·Posted 1w ago

I recently acquired an off-market property in a growing neighborhood, sourced through my local network. The purchase price was $120,000, with a rehb scope of $30,000 to address foundation and electrical issues. Holding costs, including financing and property taxes, are estimated at $10,000. After rehab, the aftter-repair value (ARV) is projected to be $180,000. Factorig in all costs, the projected net profit is $20,000. As a seasoned landlord, I must emphasize the importance of thorough property analysis, considering local market trends and potential pitfalls. In the Lexington area, we're seeing a surge in demand for renovated properties, which influenced my decision to pursue this off-market opporutnity. By carefully evaluating the numbers and mitigating risks, investors can increase their chances of success in the competitive world of fix-and-flip investing.

1 comment

@txrei_pro·1w ago

I'd love to see the pro-forma on this deal, particularly the expense ratios and cap rate used to underwrite the purchasse. With a purchase price of $120,000 and a projected ARV of $180,000, that's a significant increase. What kind of rent bumps are you projecting to support this valutaion? Additionally, how did you arrive at the $30,000 rehab scope, and are there any contingencies in place in case of cost overruns? Lastly, what's the loan structure looking like, and how does the loan size impact the overall return on investment?

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