Billy,

Recommend you look at purchasing the product from this site "Renovation Toolbox" to help fill in the gaps with your strategy.

You need to work backwards from the sale price for renovated homes/units in your target area.  A rule of thumb calculation generally used by expert renovators is dividing the end sale price by 1.35 to confirm your preferred purchase price….ie $800K divide by 1.35 would equate to $592K purchase price.  This will allow funds for purchase costs, reno, selling costs, tax and profit of 10% (10% of sell price).

You may decide to do deals for less profit but that is a basic rule of thumb that can be used to vet deals quickly.  Please note you must be an EXPERT on the selling price first to ensure you get the fit out and reno cost estimated correctly.  Sometimes you may find you can spend less on the renovation for the same sell result therefore pay more for the home initially…… lots of different scenarios and variations can be played out.

We are now heavily involved in developments and haven't done reno's for a while…….. I dont have any interest in the sale of that product but I can recommend it….. especially in your early days…..plenty of detail and info to fast track you..

Good Luck

Cheers

BC

Hi Chris,

Deal looks great…. did you complete any of the renovations yourself personally or did you outsource all of that work???

Also did you have a financier support you for the improvements based on end value or did you provide equity/cash to “owner build” the improvements????

It seems as though the whole apartment block was vacant at settlement???? What is your experience in relation to these types of deals??? are the properties generally vacant ?? how would you complete renos if properties were tenanted???

Any feedback would be helpful to add to the information bank as I plan to move into these types of properties once we get through the unit sites we are constructing over the next 6 mths..

Cheers

Brian [suave]