Need advice on how this deal! Lake front four unit

7 Replies

There is a property listed on the MLS that is a lake front four unit. Its very dilapidated. Listed for 249K, spoke to the owner and he is willing to take 210K. The property needs a massive rehab of 250K. The property will appraise for 600-50K. Huge equity spread.

I am currently rehabbing another property so my funds are tied up. I was wondering how I can make money on this deal? Can I wholesale it? 

Hard to an investor, I wouldn't want to put in $250k of work on top of $210 + Wholesale Fee to sell for $600k. After closing costs, etc, I'm at $560k. So it's $100k less your wholesale (let's say $20k). Not worth all that to make $80k. Is there anything you can provide to make it more appealing? Eg, what would the place rent for? If market rent is 1800 for each unit, that changes things. Now I can list it higher and try to make an acceptable profit. Or refi my cash out and hold a positive flowing property. Any more details you can provide?

@Tchaka Owen property would cash flow as a rental. There's 2 units that are 2 bed 1 bath, those can rent for about $1800 each. The others are 1 bed 1 bath and can rent for about $1600.

Its a solid deal just not sure how I can whole sale it to be honest.

Get it under contract for $210k, then reach out to all the investors you know!

Originally posted by @Tyler Weaver :

@Tchaka Owen partner with someone for the capital?

That would have been my suggestion, however Rigo seems to want to wholesale instead. 

@Rigo V.

is it even possible wholesale something thats already on the MLS? How would you do that?

Originally posted by @Alvin Uy :

@Rigo V.

is it even possible wholesale something thats already on the MLS? How would you do that?

I agree with Alvin that it being on the MLS results in issues trying to wholesale it. So the current owner would pay the realtor fees which is just the first thing that would make this unusual. I would have no confidence that you could wholesale it above the price the owner seeks seeing that he has already placed it on the MLS.

If it is a good value add (is likely to produce a good value add) then maybe you should take it on as a value add (flip or buy n hold).  If you need a partner, consider prior to looking for a partner what value you bring to the effort.

Good luck

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here