In the process of sealing a contract with the owner of a duplex (4 bd 2 bath). Asking price was 135000. Rent can go up to 700-800 (current tenants pay 670). I offered 125000 and seller agreed. I have a private lender willing to fund me for 150000 5% interest. ARV is 140000. Repair estimate 5-9k. Should I attempt to BRRR or wholesale this deal?
@Avery Mshawn I really doubt you could wholesale this. So you're locked in at 125k with ARV of 140k and rehab of 5-9k.
If you make 5k on this, that puts the price at 130k for the potential buyer. Assuming they can sell after only putting in 5k, they're now at 135k. So they're gonna sell for 140k and make at best 5k, not factoring in holding and closing costs.
Also not gonna have much room to BRRR when ARV is 140k and you're paying 125k and putting another 5-9k into it.
So it simple is a rental... I could still refinance and do some cosmetic work and try try again yeah? I like the feedback
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