Questions for a potential deal in Silver Spring, Maryland!

10 Replies

Hi Everyone!

I hope this posts finds you doing well. I have a potential deal right now in the 20910 zip code in Silver Spring, MD. It has a great location (close to the metro and downtown Silver Spring) in a good neighborhood. It is going into foreclosure, but the seller does not have any vested interest, so she is considering just letting it go. Otherwise, she might sell it through a neighborhood realtor but doesn’t really want to go through the process just to make a little money after commissions etc. She’s not looking to make much, which is good, but unfortunately the house doesn’t have much equity (still a ~$538k mortgage). 

I think the ARV could be around $825k after looking at comps, but the house is very dated needing a lot of rehab, and the area requires a nice renovation. Rehab could be from $75k-$115k depending on one's plan and reaching certain numbers, but I am still inexperienced (please see my recent post on the new member intro forum to learn more about me:) and am not confident in my ability to estimate rehab costs. I took an abundance of pictures and videos and am willing to share them via email if anyone is willing to please take a look and provide some thoughts/insight.

I really want to be able to get a deal out of this (I am planning on wholesaling) but do not know if the numbers will work for me and/or the end buyer. The house has a lot of potential so it is unfortunate that there’s not a lot of equity. Other than my interest, the neighborhood realtor has an interested party almost ready to buy if it doesn’t work out with me. Any advise would be greatly appreciated, and I look forward to hearing from you!

Sincerely,

Spencer Liang

Updated over 2 years ago

The address is .19 acres, 4 bed, 2.5 bath, unfinished basement, new backyard porch but almost everything else inside is dated. Hope that helps provide a little more clarity!

20910 is very very varied. ARV could be $1 million, or it could be $400k. Thats a huge difference depending on the particular property, and the particular location within the zip code. You can literally have properties 1 street apart that are near identical with ARV's that are $150k apart.

You’re right I’m sorry about that! It’s 2,268sqft, .19 acres, 4 bed, 2.5 bath, unfinished basement, new backyard porch but almost everything else inside is dated. Hope that helps provide a little more clarity!

Originally posted by @Russell Brazil :

20910 is very very varied. ARV could be $1 million, or it could be $400k. Thats a huge difference depending on the particular property, and the particular location within the zip code. You can literally have properties 1 street apart that are near identical with ARV's that are $150k apart.

Not sure if I have to quote your comment to give you a notification that I am replying to it, but you’re right I’m sorry about that! I should have included more information! The address is4 bed, 2.5 bath, unfinished basement, new backyard porch but almost everything else inside is dated. Hope that helps provide a little more clarity!

Originally posted by @Spencer Liang :
Originally posted by @Russell Brazil:

20910 is very very varied. ARV could be $1 million, or it could be $400k. Thats a huge difference depending on the particular property, and the particular location within the zip code. You can literally have properties 1 street apart that are near identical with ARV's that are $150k apart.

Not sure if I have to quote your comment to give you a notification that I am replying to it, but you’re right I’m sorry about that! I should have included more information! The address is4 bed, 2.5 bath, unfinished basement, new backyard porch but almost everything else inside is dated. Hope that helps provide a little more clarity!

I actually edited out the address from your post. Forum rules do not allow you to post the address of properties you do not own, or you are not selling yourself on behalf of an owner. (And that is only allowed in the market place)

On a slightly different note...you also want to be careful about posting that information, because you will have 100 people contacting that owner trying to steal the deal from you.

Originally posted by @Russell Brazil :
Originally posted by @Spencer Liang:
Originally posted by @Russell Brazil:

20910 is very very varied. ARV could be $1 million, or it could be $400k. Thats a huge difference depending on the particular property, and the particular location within the zip code. You can literally have properties 1 street apart that are near identical with ARV's that are $150k apart.

Not sure if I have to quote your comment to give you a notification that I am replying to it, but you’re right I’m sorry about that! I should have included more information! The address is4 bed, 2.5 bath, unfinished basement, new backyard porch but almost everything else inside is dated. Hope that helps provide a little more clarity!

I actually edited out the address from your post. Forum rules do not allow you to post the address of properties you do not own, or you are not selling yourself on behalf of an owner. (And that is only allowed in the market place)

On a slightly different note...you also want to be careful about posting that information, because you will have 100 people contacting that owner trying to steal the deal from you.

Oh no I am so sorry about that!! Would you also be able to delete my update to the original post that contains the address?

ARV is $750k, maybe as low as $725k. I dont think that property is getting over $800k.

Originally posted by @David Jackson :

@Russell Brazil can you please share what you looked to come up with $725k. I am in learning phase so i would love to know how you did the comps. Thank you

 Thats from 10 months ago, I have no recollection of the property. Im sure I just looked at the sales comps.