Rental Property Investor · Chapel Hill, NC · Member since 2019 · 26 posts · 2 votes
A wholesaler has this subject to property with $110K balance. But wants to sell for cash. Market price of the property is $130K. How much would you offer?
Satanta, KS · Member since 2020 · 12 posts · 5 votes
6y
I think that depends on a lot of other factors, most important factors in your local market. First of all, what is your goal for this property? I'm guessing rental and cashflow... but correct me if I'm wrong.
Is the house in good condition and ready to rent? If not, what renovations are needed and how much will it cost?
What do comparable rentals in your area rent for monthly?
Is the house currently occupied, if so, how long have they been there? What are they paying? Are they renters or the original subject-to sellers?
If there's a $110k balance on the property, he probably cant sell it for less than that, and if market price is indeed $130k, thats not a huge spread.
I think what we really need to ask is whether there is a suitable price which is both profitable for you and clears the home of its current encumbrances. Unless this property is cash-flowing really well, such a suitable price may not be realistic. And if the house is cash-flowing well, then why is the seller trying to offload it? I am initially skeptical of how beneficial this deal may be, but I would love to try to sort through it with you. I'm sure many others will be able to make more informed contributions to the thread once some more details are known as well.