Newbie looking to buy REO
I am looking to put an offer on a bank owned multi family in NJ. My realtor told me the market value of the property would be in the range of $290 to 310K. Though the Zillow value is around 330KI ( I am not sure how accurate Zillow is)
The bank is asking for 265K. It is a multi-family. One unit is in ok condition. The other unit needs work. I plan to call a contractor out to give me an estimate to rehab the house.
My question is how much should I offer the bank. The bank is asking for 265K. Should I stick to the ARV formula of 70% on the dollar, and then reduce it further by the rehab costs? would this be a good strategy at having a chance to get the place?
Really appreciate your advice.