Buy price and seller asking price are almost the same

[Shaun Coan]

Hey there! 

I am new to investment strategy and still in a learning/theoretical stage, practicing deal analysis. Like my title suggests, I am running analysis on a local property and my buy price, at 80% ARV minus repair and closing costs, came in just barley under Zillows listed asking price. Now on the surface, I might think "well, then there is no problem" however, there are some logistical issues and I am wondering if there may be of factors I am not considering. I feel my comps are fair. I erred on the side of slightly under my comp average (out of 4 comps, I came out with $779k and ran my ARV at $750k). I feel my repair cost is appropriate. I budgeted $62.5k for an average rehab on a 4Bd, 2Bth, 2500sqft ( kitchen, bath and paint) and honestly, I feel $62k is probably way more than needed. All in all, I came in around $27k under their asking. Like I said, on the surface, this would seem like a low pressure negotiation. I am wondering, from the more experienced flippers, if there are subtleties here I am not noticing. The big issue I am running into is this deal is a wholesale flip analysis. After I come in with my buy price and tack on my wholesale fee, the cost is more expensive than if the cash buyer would have bought it themselves.

Any advice is greatly appreciated. What direction might you approach this deal?