Trying my first deal and putting in my first offer

17 Replies

So I’m looking at 2 unit home with parking listed at 114,999 after 5,000 price reduction on market 46 days ARV 249,000 needs about 75k in rehab. I’n going to offer 85,000. Doesn’t anyone see this as a good or bad offer ?
@Kenneth Liz Hi Kenneth, Sounds like you want to hold and rent them. You didn't mention what the rental prices would be nor any of your monthly costs such as insurance and taxes. How much do you want to cash flow each month? Its very difficult to know if your offer makes sense when so many pieces of the math are missing. Have you tried using a BP calculator? They are very helpful for discovering what your offer strategy should be. Hope this helps you. Regards, Johnny Napier

At $115k you tend to make $50k. Nothing wrong with that. Not sure what your motivation is to get it at $80k. You may lose the deal if you try to get it for too low. And if its bank owned your chances are low of getting that kind of reduction. This is your first deal. Focus on the logistics of actually doing the fix and flip or hold.

@Kenneth Liz That's amazing.  I thought the deal was good at $115K so you just made some extra margin. Close the deal and focus on the next step of rehabbing within your estimated budget.