I'm relatively new to bigger pockets but have been investing in real estate for about 3 years. Currently looking at the following deal.
Single family home 4 Bed 3 Bath 1900 finished sq ft. 2 Car garage, 500 unfinished storage and laundry room. Ranch with basement.
House needs - New furnace, new flooring or carpet in basement, and some other cosmetics minimum - $10k to $15k repair estimate
Potential rent in my market would be $1,800
I could also put a little more into the home and flip it. ARV would be between $350,000 $365,000 depending on level of finishes.
I could also potentially wholesale the deal for $325,000
Rental, Retail, and Wholesale market is strong in Fort Collins, CO.
What would be a good cash offer to make. Home is not currently on the market.
Thanks for any input.
Maybe I'm not familiar with a good deal in your area, but $1800 in rent wouldn't even cover a conventional mortgage on a $325k house unless they put a ton of money down.
For a flip, it depends on what you can get it for. you will probably have $30k in buying/selling/holding costs (could be more depending on your financing needs) plus $20-25k (just guessing by your comments above) in rehab costs. To make a flip worth while, you would need to be buying it for $250-275k max.
Who is your wholesale buyer at $325k? A flipper wouldnt make any money there, and a rental also looks like it wouldn't make any money.
This is just my opinion, I'm sure more experienced members will chime in.
How would you pay for it? Cash? FHA? Conventional? Owner Carry? That cost may influence your decision on what to do with the property.
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