Georgia rookie investor, about to pull the trigger.....MAYBE!
Thank you all in advance for any input. I have been interested in RIE for a long time, but I have always been too chicken to give it a shot. I am trying to lock up a deal, and want some input as an exit strategy. I want to do one or the other, and nothing else. So if anyone can please tell me if I should wholesale this deal or fix and flip it? Or is this not a deal and move on?
Long story short: I drove for dollars, sent out some mail, and took inbound seller calls. I have a seller interested in selling. There is motivation. He is retiring, in his 70's and doesn't want the headaches anymore. He wants what he owes on the property, 62K, to sell to me. I am obviously going to talk him down, because he bought the property in 2004 for $65K and has rented it out for the past 14 years. So either he has refinanced, or something went terribly wrong somewhere, haha. He says he has put a new roof on and a new A/C in the past 2-4 years. He said a local realtor told him that the ARV is $125K. He believes the cost to do the flooring and paint and what-nots will be $15K, for a move in ready rehab. So, worst case scenario, purchase for $62K+closing costs+$15K rehab+$1K carrying cost=approx. $80K. Say that we get $110-$115K for the sale, and buyer pays closing costs, it's a sellers market right now. That is between $30-$35K approx. profit. Is there a margine for a wholesale profit, or should I take on this rehab myself? Is this a wise first investment? What should I do? Any advice would be super appreciated. I am supposed to talk with this seller on an appointment in less than 48 hours. Thank you in advance for any input. By the way, I love the Bigger Pockets community, and I look forward to contributing more in the near future.