Property Description:
ARV 250k-$260k Purchase price $90,000 125 North Chamberlain St. Rockwood, TN 37854 3 bed 2 bath Added value is an additional .37 fenced-in lot... adjacent to the home.
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Here’s the revised calculation with the ARV of $260,000 and the purchase price of $79,999:
Without an agent involved, you can save on commission fees, reducing your selling costs. Let’s adjust the calculation accordingly:
### **Revised Selling Costs** (for closing costs, etc.):
- Estimate **2%** for closing costs and other miscellaneous expenses:
**$260,000 * 2% = $5,200**
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### **Revised Total Costs:**
- **Purchase Price**: $79,999
- **Repairs**: $70,000
- **Holding Costs**: $6,000
- **Selling Costs**: $5,200
- **Total Investment**: $79,999 + $70,000 + $6,000 + $5,200 = **$161,199**
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### **Revised Potential Profit:**
- **ARV**: $260,000
- **Total Investment**: $161,199
- **Potential Profit**: $260,000 - $161,199 = **$98,801**
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### **Revised ROI:**
- ROI = (Profit / Total Investment) * 100
- ROI = ($98,801 / $161,199) * 100 = **61.3%**
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### **Conclusion**:
- Without agent fees, your potential profit increases to **$98,801**, and your return on investment (ROI) jumps to **61.3%**.
- This makes the deal even more attractive!