Getting this property for $55,000 is a total home run. With the neighborhood assessment showing comparable sales as high as $187,000, your exit target of $160,000 is conservative—which is exactly how you want to underwrite a deal to protect your pocket.
At 1,794 square feet, your biggest variable is the rehab budget. A solid cosmetic refresh (paint, flooring, kitchen/bath updates) typically runs $30 per square foot. Given the 1958 build date, I’d budget at least $50,000 to handle potential surprises like outdated wiring or plumbing while modernizing the space.
| Deal Component | Estimated Amount |
| :--- | :--- |
| Sale Price | $160,000 |
| Purchase Price | ($55,000) |
| Selling Costs (8% Comm/Closing) | ($12,800) |
| Estimated Rehab Budget | ($50,000) |
| Estimated Net Profit | $42,200 |
Tax-wise, if you flip this in under a year, your $42,200 profit is taxed as ordinary income. If you can hold it for over a year (perhaps as a rental first, given the $1,733 rent estimate), you’ll likely pay the much lower long-term capital gains rate.
Either way, you're looking at nearly a 75% return on your total capital invested. That's a massive win in any market!
611 N Roselawn Dr, West Memphis Investment Report: Flip & Rental Analysis · Frontflip