townhouse that may be a good rental

2 Replies

So i have never wholesaled a townhouse. I have only done single family houses.

I have a townhouse that I am trying to wholesale for a coworker. The seller owes 143.000 on the townhouse , He wants to walk away with 20,000 in his pocket, I would like a 3,000 assignment fee. The ARV on the townhouse is 195,000 and the townhouse needs very little work. Only paint in 3 of the rooms and some laminate in the living room is needed. About 2,000 in rehab cost. The property is pretty much move in ready. I think this would be a great rental property but cant find any cash buyers. Are my numbers off ? Any advice on how i should proceed. The seller wants to close by the end of November. Thanks

Flag on the play.

Why would the seller wholesale for $160k when ARV is $190k and the home is pretty much move in ready? Also it only makes sense as a rental if the rent is high enough, which you haven't provided an estimate for.

In addition to @Aaron K. 's excellent points, be aware that many investors are wary of townhomes with a monthly HOA fee and possible unknown assessments. I own several of them, and they've been great for me. But it's not a natural fit for many traditional SFH investors.

Best of luck!