I have a Sfh 3/2.5 in a nice area under contract for $215k the ARV is 280k. Suggested rent price is $2,100. It is a foreclosure and it needs no repairs. Do I still have to buy at .60/.65% to be a good deal?
Marietta, GA · Member since 2013 · 202 posts · 118 votes
6y
I'd reconfirm the numbers to make sure. My question is if it needs no work and it's truly worth $280K, why is the bank letting it go for 215K? In this market they could easily get full price.
Real Estate Agent · Woodstock, GA · Member since 2018 · 253 posts · 255 votes
6y
@Preston Herd "A good deal" is subjective. Every investor has their own risk tolerance and their own criteria on what they consider a deal. It is important to fully understand the numbers and have confidence in them.
How confident are you in the ARV and the rent amount?
Marietta, GA · Member since 2013 · 202 posts · 118 votes
6y
I'd reconfirm the numbers to make sure. My question is if it needs no work and it's truly worth $280K, why is the bank letting it go for 215K? In this market they could easily get full price.
Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
6y
Like @Matthew Nicklin said, double check the rent amount as "nice area" "$280k value" "no repairs" and "$2100 rent" are pretty rare to find in most hot markets...not sure what market you're in.
These are weird times, @Kevin Auyong, so if a bank was to dump it quick for cash, I guess I could see this happening as they're in a credit crunch.
In this market, I'd probably go closer to 70% ARV as I'm guessing your comps are based on Pre-Covid numbers.
I'd also double check there are no repairs. You'll still probably need to clean it, double check all the items work and the like. Even if it looks like no repair, I'd always put a min. of $5k for any misc. I just had my roofer look at a rental I just bought hoping he'd just give me a green light (I trust him), and he found a few hundred dollars of things to tidy up including some siding falling off.
It's not a "bad" deal. In this market it's above average I'd say. Not "great" . Congrats !
@Preston Herd "A good deal" is subjective. Every investor has their own risk tolerance and their own criteria on what they consider a deal. It is important to fully understand the numbers and have confidence in them.
How confident are you in the ARV and the rent amount?
I'd reconfirm the numbers to make sure. My question is if it needs no work and it's truly worth $280K, why is the bank letting it go for 215K? In this market they could easily get full price.
It's in pre-forclosure, I got a send opinion from a few agents who confirmed rent amount and the ARV. Although I may need to add 5 to 10k for repairs.
Like @Matthew Nicklin said, double check the rent amount as "nice area" "$280k value" "no repairs" and "$2100 rent" are pretty rare to find in most hot markets...not sure what market you're in.
These are weird times, @Kevin Auyong, so if a bank was to dump it quick for cash, I guess I could see this happening as they're in a credit crunch.
In this market, I'd probably go closer to 70% ARV as I'm guessing your comps are based on Pre-Covid numbers.
I'd also double check there are no repairs. You'll still probably need to clean it, double check all the items work and the like. Even if it looks like no repair, I'd always put a min. of $5k for any misc. I just had my roofer look at a rental I just bought hoping he'd just give me a green light (I trust him), and he found a few hundred dollars of things to tidy up including some siding falling off.
It's not a "bad" deal. In this market it's above average I'd say. Not "great" . Congrats !
Like @Matthew Nicklin said, double check the rent amount as "nice area" "$280k value" "no repairs" and "$2100 rent" are pretty rare to find in most hot markets...not sure what market you're in.
These are weird times, @Kevin Auyong, so if a bank was to dump it quick for cash, I guess I could see this happening as they're in a credit crunch.
In this market, I'd probably go closer to 70% ARV as I'm guessing your comps are based on Pre-Covid numbers.
I'd also double check there are no repairs. You'll still probably need to clean it, double check all the items work and the like. Even if it looks like no repair, I'd always put a min. of $5k for any misc. I just had my roofer look at a rental I just bought hoping he'd just give me a green light (I trust him), and he found a few hundred dollars of things to tidy up including some siding falling off.
It's not a "bad" deal. In this market it's above average I'd say. Not "great" . Congrats !
@Preston Herd "A good deal" is subjective. Every investor has their own risk tolerance and their own criteria on what they consider a deal. It is important to fully understand the numbers and have confidence in them.
How confident are you in the ARV and the rent amount?
I'm confident on both just not so much on repairs now. I should add up to 10k. It can stand to be painted and carpet cleaning.