Advice on deal
I put a house under contract for 30,000
Arv 59,000
3\1 1564 sq ft.
House has a tenant in it paying 500 a month
Rehab 3000
Asking 38,500
I have had this property a week and 4 investors have looked at it but no one has pulled the trigger. I have often read on here that if its a good deal investors will jump in on it, Is there something I am missing? I market it on craigslist everyday. Can someone tell me what I am missing.
What kind of ad did you put under craigslist? What does the ad say?
IS that a current picture? What is included in the quoted $3k worth of repairs?
what is the location like ,crime etc ,median income, etc Why don't yo buy it fix and sell for 59K
ads usually say something about the property being turnkey and that it already have tenants and about the shed that can be turned into a 1\1.
That pic is from my walk through. included in the 3000 is the siding around the window, the boarder around the end of the roof, and dry walling in 2 rooms.
I don't have the capital or credit to buy fix and flip. I'm looking to flip this as fast as possible. Those are the pics I post online. The roof may look bad but its really just that boarder. roof only 5 years old. Tenants love the house. no leaks or nothing. Tenants even willing to do a lease purchase option.
Your estimate of repairs is low in my opinion. Granted, I have not seen this property in person but I think I can see almost $3k in repairs just from that first pic.
someone else just told me that. I will get a contractor to go in and estimate repairs tomorrow. its all cosmetic
If the ARV is 59k, can you go in with a partner who has some cash? Then get hard money for the difference? Have you gone to a local REIA if there is one? If not, then I would market at 35k...but I'm not a wholesaler so don't know much about how much you "should" make. Best of luck! Keep us posted.
Have you tried asking the buyers why they didn't take the offer? Did they attempt to counter offer you at all?
I agree with everybody else, $3k is definitely only enough to get a fresh coat of paint and finishing the floors/carpets.
I guess that's the thing it doesn't need any flooring done, the owner just did all of that, on thing needs done is the siding around the window, which is on the ground right in front of the window, the edge of the roof base board, and drywalling in 2 rooms.
did I mention this house is in Lumberton mississippi
update*************
I backed out of the deal. The seller got mad because she found pictures of that house online for sale at a higher price than she was asking. She said I was unethical because I was trying to sell her house before I even closed on it. I gave her the I am an investor speech and reminded her of the an or assigns. Then she told me I wasnt moving fast enough and she wanted to explore other options. I'm thinking,but we have a contract, but I told her I'll back out the deal and let her explore the other options. What I found out is I was in the house for too much. I was in at 30,000 when I should been it for 15,000. Investors would have scooped it up at 20,000 all day. The area is renters area and that's why my flip investors wouldn't touch it.
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Well, that happens when they think you're actually buying their house.