Investor · Tampa · Member since 2018 · 289 posts · 107 votes
I'm interested in a property which is being aold for $79,000. I want to use the BRRRR strategy and offer $65,000. But I got some insights that the buyer has a loan on the property for $74,500 which is why he hasnt accepted any offers as yet. The property has been on the market for 120 days.
Any suggestions on how to make an offer so both parties win?
@Keleisha Carter A quick review of the numbers is that I don't see it working. If it's been on the market for 120 days then I would assume it's not worth $79k. You certainly could offer $65k, but the seller would have to bring about $10k to the closing table to settle the mortgage. Does the buyer have that?
Also do you have an estimate of the rehab required and what the value may be after it's fixed up? For example, if it required $30k in rehab and would be worth $100k after, then there's no money to be made.