Deal or No Deal? Flipping a Condo in Congress Park

This is another episode in our Deal Analysis subseries called “Deal or No Deal?” with Derek Marlin of ELEVATION. In this episode, we analyze a Congress Park Condo that a Partnership client recently found on the MLS and brought to him. Is it a deal or no deal? Read on to find out!

Listen to the podcast or watch the video for the full discussion.

Client Deal Analysis

Derek’s client found this potential property and sent Derek his analysis:

• KEY STATS
  • $240,000 purchase
  • $259k, $253k, $245k counter
  • $22,000 rehab
  • $305,000 ARV
• Rehab scope of work (SOW)
  • Kitchen- same layout
  • Bath
  • Flooring, paint
  • Fixtures & finishes
  • 30 day rehab
• Comps
  • 1 comp @ $305,000
  • Others- I wasn’t told of others
• Projected Profit:
  • $20,140

The spreadsheet screenshots below are from Derek’s Flip Deal Analyzer spreadsheet (free download.)

Elevation Deal Analysis

After Derek received the client’s analysis, he did his own analysis:

• KEY STATS
  • $240,000 purchase
  • $24,500 rehab
  • $275,000 ARV (Max)
• Rehab Takeaways
  • Overall cosmetic
  • + $2,500 electrical panel
  • Building approval process
• Sales Analysis
  • 834 sf unit bought 4 days ago
  • $223,650 ($235k list price)
  • Layout ideas from other rehab
• Comps
  • 6 comps, 3 in building
  • $305k comp @ 834 sf
  • No appreciation
  • Sold 13 months ago
  • Can’t select 1 highest comp that’s 15% smaller
• Projected Profit:
  • $11k LOSS

Outcome: No Deal!

Based on the numbers and the results, this is no-deal! Onto the next one.

Flipping Academy

Elevation is hosting a 2-day Flipping Academy in Denver on July 23 and 24, 2020 and limiting the size to 12-15 participants. Denver Investment Real Estate followers can use the promo code DIRE to get bonus one-on-one flipping consulting hours.

Connect with Derek or get more information on the next 2 day academy in Denver on July 23 and 24, 2020.

If you have a property you would like to run by Derek for a partnership flip, reach out.

YouTube Video: Flip Deal Analysis – Condo in Congress Park