Opinions appreciated on this potential deal

[Corey Keller]

Property valued at   $194,100

Comps in the low $200's

Here's the breakdown:

   $194,100

x        .70 - the golden rule

_______________

   $135,870

We figured the house to be a medium repair price, so we took $15 x the square footage which = 

   $1,147 - sq ft

x      $15 price per sq ft

__________

  $17,205 total inside repairs(bathrooms etc)

We haven't talked to the owner, but are figuring $20k in repairs(roof etc) Sooo

   $135,870 - after the golden rule

-  $ 17,205 - interior repairs

____________

$118,665

- 20,000 - Cap X

____________

- $5,000 - fudge factor

$93,665 - MAO without profit

DEAL, OR NO DEAL?

Thanks in advance

[Aaron K.]

@Corey Keller I think estimating rehab as a cost per square foot is useful in determining if you should investigate further (just like the 70% rule and similar rules)  Once you see the inside you should be able to come up with a more itemized list that better estimates costs than an average from someone else.