Flipper/Rehabber · San Diego, CA · Member since 2018 · 46 posts · 47 votes
Hello,
I am a wholesaler from San Diego, CA and I am working with a local seller who has a house in San Antonio, TX. Since I don't know the market in Texas I am looking for some help on coming up with a purchase price. I have the ARV of the house at $150-160k based on recent sales in the same neighborhood. Usually I find the price by taking 75% of the ARV and subtracting the expenses. Is that similar to what investors in San Antonio are looking for? Any feedback from investors in the San Antonio market would be greatly appreciated. Thanks in advance.
Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
7y
Thats about right (70-75%). BUT if you are going to wholesale it, you need to buy it below that. You will also need to know how much rehab is needed. I guess you could have someone locally let you know that.
The ARV is also something that people seem to stretch a little these days. When people tell me the ARV is 150-160k I already know that it is really about 140k. There are so many factors that you have to SEE in the neighborhood that out of state people can not see from 1000+ miles away. Neighborhoods change with a few streets, Sometimes getting comps from a couple of blocks away will be completely off. Just something to think about.
Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
7y
Thats about right (70-75%). BUT if you are going to wholesale it, you need to buy it below that. You will also need to know how much rehab is needed. I guess you could have someone locally let you know that.
The ARV is also something that people seem to stretch a little these days. When people tell me the ARV is 150-160k I already know that it is really about 140k. There are so many factors that you have to SEE in the neighborhood that out of state people can not see from 1000+ miles away. Neighborhoods change with a few streets, Sometimes getting comps from a couple of blocks away will be completely off. Just something to think about.
Investor · San Antonio, TX · Member since 2013 · 213 posts · 182 votes
7y
@Alex Bradley honestly it really depends. We have flipped properties with a tighter spread because of its simplicity. Also at that arv a lot of times it also makes sense for a buy and hold which could get you a higher wholesale fee.
Feel free to reach out and I'll walk you through the numbers.
Flipper/Rehabber · San Diego, CA · Member since 2018 · 46 posts · 47 votes
7y
@Rick Pozos valid point about the ARV. Since the seller is also an out of state landlord I am hoping the he is working with a PM. If so I might be able to work with them to get a better idea of near by comps as well as estimated rehab costs. The seller sounds like he hasn't seen the house himself in a really long time.
Lender · San Antonio, TX · Member since 2018 · 109 posts · 108 votes
7y
@Alex Bradley you will find people with all different buying criteria. I've wholesaled properties here where the end buyer ended up paying 80-85% of ARV (not including repairs) (mostly out of state investors who are looking to rent and just get into the market).
I'd encourage you to price it based off 75-78% of ARV minus repairs. That's generally where you'll see most investors purchasing at in the San Antonio market. Some will pay higher, but don't bank on it. Just depends on the area.