My SO and I have recently been perusing homes, interested in moving closer to her parents, or closer to my job, or somewhere in between. After a conversation with a reputable real estate agent, it seems as though we could sell our home for more than we originally thought.
Market Value: $170,000 (via Real Estate Agent)
Original Purchase price: $60,000 + $40,000 in 203k Renovations
Original Mortgage Amount: $100,000
Interest Rate: 4.25%
Mortgage Term: 30 yr
Term remaining: 26 yr
Amount remaining on mortgage: $82,000
Principal and Interest: $500
Taxes and Insurance: $460
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Net Monthly Income: $2750 + fluctuating commissions $400-800
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Monthly Liabilities:
Car: $140
CC: 75
reno CC: 130
Student Loans: $167
MTG: $960
So the real estates agent suggests we paint the interior/exterior of the house, refinish the hardwood floors throughout, and some additional minor updates.
The total repairs/renovations are estimated to cost $12k-13k. Without these updates, he imagines we could list it for $120k, and get low ball offers from flippers. So if we do the flipping, we can net the profits and use it toward killing off all debt, and having 20% down payment funds for the next house, plus replenish the emergency funds.
Even if the agent misses the mark by 10-20k, I feel that I can still dig myself out of the hole and have enough to put down for the next place. I'd like to avoid PMI, but zero-ing all CC debt, Car loan, student loan debt is more of a priority.
Here's my expected list of payoffs
82,000 - MTG
5,000 - Car
13,000 - CC from Reno at 0%
8,750 - Closing Costs
3,000 - Law office + Title Insurance
7,400 - CC Existing at 0%
16,000 - Student loans
30,000 - Down Payment
165,150 - sale price would cover most everything. anything over that is gravy.
Am I missing anything? I think I conservatively padded my costs. This seems like a great way to execute an unplanned slow flip and crush my debt. I know there's risk with financing the renovations on CC, but it's all at 0% for 12 months. I expect we could sell well before then. We're looking at houses that are listed for $150k or less, so our payment and total mortgage amount wouldn't creep up that much.
any thoughts?
thanks in advance