Wholesaling Rentals
Hi. I am looking at a possible wholesale deal tomorrow in Pittsburgh that is a small, 2BR in a rental area that was bought for 59K in 2005. The are liens on it for about 8K according to family lawyer.
First, how do you figure out if t would be a good rental? I understand how to compute for a flip,but am not sure about rentals. Does one do a cap rate calculation? What else would make it a good/bad deal? I have no idea about how much rehab is needed yet.
How about the liens? At the level of reseale value I would think that 8K right off the bat essentially disqualifies it. Namely, let the estate pay for it.
Again, this would be a wholesale deal as I am not interested in this for my own buy and hold.