I have a potential wholesale deal (my first!) that is for a Buy and Hold investor. The property is located in Austell, Georgia (northern suburb of Atlanta) and is on Austell Road. The 3/2 house (built in 1962) is rented for $900/month currently (est. rents in the area are $1,100), I would sell it for $110k in order to make a small wholesale fee. Here's the kicker - most everything in the house has been updated over the past few years - hvac, plumbing, roof, floors, kitchen, bath etc. for $30k. Therefore, it's renter-ready (obviously!), but my feeling is maybe he put too many updates into the house??. Current renter has been there 4 years. The house values at $114k on trulia, so I know the '30% of ARV math' doesn't work, either. However, there's a lot of community development being done in the area (ie., sidewalks, park access, etc.) which will increase home values, eventually. In fact, he claims a local realtor offered to list the house for $160k (!!!), only if he would let the listing be for 10 months. ($160k - seems to be a PIPEDREAM!!) He wasn't ready to sell at that time. I found him via my first yellow letters campaign.
I don't think I have anything here, but thought I'd get more involved on the forums, so that's the reason for this post. Thank you to all for your comments. Looking to learn a bunch...!
@Mark Beno have you reached out to a local Realtor who can run a CMA on your behalf? If not, I can send someone your way (since I can't solicit services).
That would be great Deborah. Thanks!
I have a similar deal in Austell rd. And the house is worth 140k.
Plug it into the most selling calculator and see what it says on how much you should offer. Also I wouldn't trust Trulia. I would use redfin.com to get a better evaluation of how much the home is work. As a rental you're not worried really about how much the home is worth but how much income the home temperatures. So when you use the whole selling calculator when it asks for the buyers cash on cash return put in 10.
@Mike Watkins Thanks, I'll give it a try.
While I could be wrong, I doubt there are many 3/2 houses built in 1962 anywhere on Austell road worth anywhere close to $160K. Is it north or south of the connector?
My guess is that $900-1000 is about right for rent, and that these days, you could probably sell it to a landlord at about 1% of whatever it's rented for (or about $100K if it's vacant and the buyer plans to hold it as a rental).
I haven't been tremendously active in that area in the past year, but did about 60 flips there between 2008-2013...so take that for what it's worth...
I check my list against the usps vacant list because who's going to sell a house that's making them money.
This deal in Austell was vacant because the tenant was in jail and he wants out of the rental market. Plus he's 86.
I'm getting his attorney and hopefully he'll send me some leads from landlord evictions.
@J Scott its a few miles south of the connector. Sounds like I need to push back on the seller and get a lower price, in order to be able to do this deal. Thanks for the advice!
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