Would you do a deal like this?
Hey guys. I had my first buyers appointment at the sellers home that I am wholesaling. The deal is as follows:
SFH CBS 3/2 1700sq ft
I got it under contract for $155,000
Wholesale price $175,000
ARV $240,000
My buyer wants to make $20,000 minimum profit on the rehab. He thinks this would only net him $13,000 and it would take him 4 months to complete.
I think he would net $24,000 and it should only take AT MOST 2 months to fix. The property is in pretty good condition. Only light cosmetic repairs (drywall two rooms, 2 bathroom remodels, relaminate kitchen cabinets, and paint interior and exterior)
He thinks it's a $20,000 rehab (he agrees that it's a light rehab and this is his estimate for the above repairs) and 4 months turnaround.
The buyer wants it at $165,000 but I feel like I should be firm on the price of $175,000. Am I being unreasonable?
This is my first deal so I don't want to screw the deal up but I do want to make enough to purchase the next good deal I come across instead of wholesale it.