First Wholesale Deal.. Back Taxes and a Not So Nice Tenant
Hello BP,
I'm very new to wholesaling. This would be my first deal. I contacted a seller today and he called me back. He has a property in a not so nice neighborhood and wants 10K. He also stated he had back taxes on the property for about 5K. I checked the assessors office and the back taxes owed are totaling $5035.91 So in essence he is asking $15035.91.
The average ARV based on the cash sales for the past 3 months is about $21,200. The ARV*.65 = $13,780 and we have not even addressed the repair costs and the tenant. I don't think this is a deal that I want to make an offer on. I could build in the cost of evicting the tenant, but since I don't plan on keeping the property, should I just build in my assignment fee and give him a final number? I'm still green and unsure right now, so any assistance would be wonderful.
Thanks in advance!