Deal of the Week: Fix and Flip in Van Nuys, California
Welcome back, real estate enthusiasts! This week, we dive into an exciting fix-and-flip opportunity in Van Nuys, California, guided by Ben Williams.
Let’s break down the key aspects of evaluating this promising deal.
Property Overview
- Location: 14926 Gilmore Street, Van Nuys, CA
- Specs: 4 bed, 3 bath, 2025 sq. ft.
- Listing Price: $875,000
Ben highlights the importance of a thorough analysis, emphasizing adherence to his strict budget. He examines the property inside and out, noting the potential for new flooring, kitchen updates, and bathroom renovations. Key upgrades could push the property’s value significantly, but only if costs are kept in check.
Evaluating the Deal
- Neighborhood Insights: Ben uses Google Maps to assess the surrounding area, confirming it’s a typical Van Nuys neighborhood with no major red flags.
- Comparable Sales: Recent sales in the vicinity provide a solid basis for estimating the After Repair Value (ARV), pegged at $965,000.
- Rehab Costs: Estimated at around $100,000, covering flooring, kitchen, and bathroom upgrades. The focus is on maximizing appeal without overspending.
Financial Strategy
- Offer Price: Calculated using the 70% rule, leading to an offer of $575,500.
- Profit Potential: If sold at the estimated ARV, Ben anticipates a net profit of around $187,000, even after all costs are considered.
Conclusion
Ben sticks to his numbers and advises against emotional decisions in real estate investing. The maximum offer should reflect a comfortable profit margin, ensuring financial viability.
What would you offer for this property? Share your thoughts below!
