Investor · Lake Mary, FL · Member since 2015 · 62 posts · 21 votes
Perfect little fixer-upper in the heart of Mount Dora. This four bedroom, two bath home is conveniently located five minutes from downtown shopping and dining. Easy access to major roadways to commute to Lake, Seminole, and Orange counties. Ideal rental property with a small neighborhood feel. If you're looking to expand your rental portfolio, this is one you don't want to miss out on! Wholesale Price $55K ARV $95K Est Repairs $20K Rents $1000-1200 a month
Engineer · Santa Ynez, CA · Member since 2013 · 72 posts · 23 votes
11y
I've been watching this one on Zillow/MLS and it states that the seller is very motivated at an asking price of $53,900. At a negotiated offer, one would expect about a 10% to 20% reduction from asking price. This house should be purchased from the seller at $45k +/- and maybe less depending on repairs. It also states a current renter wants to stay at 900/mo, which is closer to the going rate for that Sq footage.
Did you remove the renter and fix up the house? If so, why are the further needed repairs est at $20k?
Investor · Lake Mary, FL · Member since 2015 · 62 posts · 21 votes
11y
Thad-
First, it's bad form to post something like this in a public forum. I received your private message and, to be quite frank, didn't bother responding because any time I see the word "Zillow" from an "investor", I tune out.
That being said, it's clear you don't have much experience in the current Florida market. Wholesale homes are sold well above list price as a matter of course now. This market is so saturated, and the realtors with these listings know that fact, that homes are priced low to drive up "highest and best" offers. Trust me, it's no picnic having to explain to my investors for the past year or so why I've got a house on the market for above list. Deals are still out there, and equity is in these homes even at above list price plus repairs, but the market is no where near what it was even just a few years ago.
The house is currently empty, however, no repairs have been done. As the information above states, this is a GREAT house to add to a rental portfolio. As an added word to the wise... your formula you mentioned is perfect, in theory. Unfortunately, that formula isn't going to land you a lot of contracts in this market. Good luck with your endeavors.