In need of help making a offer on a potiential wholesale/flip

[Trevor S Foster]

Hello, I have a potiential deal on my hands and Im in the middle of trying to run the numbers and Im getting somewhat confused and overwhelmed.

This is my first deal and Im not sure what to offer the home owner. advice would be much much needed.

Asking Price: 255,000

Townhome

2 Story

3 bed

2.5 bath

1696 SQFT

2 parking spaces

I know I have a deal on my hands that can be either wholesale or flipped. Since this is my very first potiential deal I really want to get this right. I have an idea in my head but I just need reassurance.

Im thinking to ask to offer 215-220k. I believe the entire place will need to be updated.

What do you guys think?

One comp sold at 257k that had a updated kitchen new carpet, tile and paint. bathrooms werent really updated.

this home I know will need kitchen, laundry, all bathrooms updated. as well the hardwood floors and carpet.

what do you guys think?

[Brandon Sturgill]

@Trevor S Foster you need a local expert if you are not versed in running comps. Most agents have access to good analysis tools, you just need to find one and ask for assistance running comps. Outside of that, you're forced to use public tools like Zillow, Trulia, and Redfin....

Most county auditors are on the same platform at this point and have data on comparable sales...you just need to dig a bit. For a back of the envelope, you can use sq. ft. for purchase and renovation...for example $100 sq. ft for purchase and $25 sq. ft. for renovation....this is just an example, actual valuation is a science.

General rule if you use a popular site is stay with closed comps sold within 6 month and not more than 1 mile from the subject (again just a starting point...we would use more than just closed comps to predict price).

You may have to pay for it, but a Broker Price Opinion may be a decent way to go....

As far as acquisition and exit, things get complicated...too much detail to type here...glad to discuss further, though.