✅ Deal Breakdown in Tacoma, WA
Property Snapshot: - Address: 6014 S D St, Tacoma, WA 98408 - Specs: 3 Beds, 2 Baths, ~1,414 sq ft, built in 1965 - Recent Valuation Insight: A property report estimates resale value as high as $470,000 — assuming top condition - ** Financial Breakdown:** Max Bid $280,000 Rehab Budget $20,000 Closing Costs $36,000 Holding Costs $9,000 ** Total Project Cost** $345,000 After Repair Value (ARV) $450,000 Projected Profit $105,000 Estimated ROI≈ 30% Calculations: - Total Investment = $280K + $20K + $36K + $9K = $345K - Profit = ARV ($450K) – Total Cost ($345K) = $105K - ROI ≈ $105K ÷ $345K ≈ 30% Why This One Stands Out - Strong ARV Spread: The aggressive ARV of $450K gives a healthy upside over total costs. - Modest Rehab: At just $20K, rehab scope seems limited—great for faster completion and lower uncertainty. - Auction Flexibility: Buying under market value at auction offers room to bid smart and control margin. - Recent Comparable Value: With resale estimates up to $507K, the $450K ARV sits conservatively—buffer built in. Fellow investors: With a ~30% ROI on this deal, what would your max bid ceiling be if you're aiming for a >= 25% ROI instead?