Is this a good deal

Real Estate Investor · CA · Member since 2010 · 4 posts · 0 votes

The property is in SoCal - suburbs.

ARV $380,000
repairs 15,000
costs for $, RE agents, closing $36,000
SUB $329,000

This is a REO, asking price $295,000. My thought is to offer $280,000.

Thoughts??

Overall the property is in good shape. Nice neighborhood. Updated homes are selling in 45 days.

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Loc R.
Note Investor · Pasadena, CA · Member since 2009 · 849 posts · 544 votes
15y
$280K acquisition + $15K in rehab is 78% of ARV, assuming all your numbers are on the mark.

That's a little tight in this market, IMO.
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Tony Salazar
Rehabber · Corona, CA · Member since 2009 · 59 posts · 21 votes
15y
Actually for Calif, these numbers work as long as you know the area, ARV is true, and rehab is only 15K. Return is 17.5% in 4 months. Proceed to your next step.
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