Make a reasonable offer to distressed seller in Central Texas

[Jake Bryant]

Hello, I am reaching out because I had difficulty calculated the ARV and MAO. I found the seller through Facebook for a sale by the owner and invited me to walk through the property. She wants to sell the property at 164k. There are a lot of works on the property that I saw at the house. It would be a full gut rehab. An estimated rehab costs 60k-100k. I wanted to make an offer to the seller, but that offer would be no good for them. That was my concern about it.

Make an offer 

I found the comps via properstream , Zillow, and relator

ARV-160,000 * .7- 70k (rehab cost) -10k (assignment fee)= 27k (MAO)

Isn't it make sense? Any feedback or make comments that would be helpful!

It is my first offer.  

Thanks!

[Greg H.]

The reality here is you have a seller that wants $164k for a property that is worth $160k after $60-100k rehab. To make this a reasonable deal the seller would need to accept an offer of $20-60k. The numbers here are so far off that I just throw a number out there and move on.  
For $100k in rehab, you can just about build a smaller home from the ground up in many parts of Texas