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Are you wholesaling this? If you have it under contract for $120,000 and it only needs $10,000 in work to be worth $250,000 why wouldn't you fix and sell it for a massive profit verse wholesaling it for much smaller profit? $10,000 in work is a couple weeks worth so very short duration.
Also, where did you come up with only needing $10,000 in work to over double the value?
If your numbers are accurate, with that level of spread you'd be crazy (with all do respect) to wholesale this deal. You're missing a golden opportunity if your numbers are on point. Find the money to close, get the work done and sell it at the market. You want to build funds...sell it for 100k more (roughly from your numbers)!!!!
I agree with @Joshua Gruber , get a loan, use your contractor and get this thing owned, fixed and make your $80-100k verse a lower amount wholesaling it.
I would also be VERY leary on his $9000 bid, when over half is HVAC. What else is being fixed for the remaining $4000? Why would a seller accept $120k when that person could sell for significantly more with an HVAC upgrade, or even simply listing it and selling for a lot more to an investor.
I would get your ARV figured out 100% before you do anything. If it was worth even $175-200k, in very nice shape and they had it listed at $160k and no one jumped and bought it (not an investor, a homeowner) why not? If you want to share the address, I'm sure some of the locals could weigh in on the ARV. However you initially said $250,000 and have since dropped to possible $175,000... definately need to get that accurate before you do anything else.
If you're looking to sell it after the work is done as a residential home then look at the comps in the area and determine price per foot, etc. With that being said if you're looking to sell it as a rental or hold it as a rental the price per foot or the "classic comps" are less important. Determine the gross rent multiple that similar rented properties in the area are going for. Apply that multiple to your actual or projected post renovation rent (before any expenses are deducted to your rent toll) and you'll have a ball park idea of it's true value. Unfortunately, residential brokers in most areas aren't equipped to value and sell a building/house being used as a rental. Yes, said property can be used as a single family home for a user, but when a property becomes an asset and generates income it has to be looked at and valued differently. Valuing it through the lens of a "user premium" won't cut it.
also the property address is
6021 64th Ave #21, Riverdale MD, 20737
Rent in that area for other condos just exactly like it in the same community are renting out for about $1700 per month based on that i think my offer price maybe should be around 148k? for a wholesale deal?
i see that Zillow has the common value for these condos around 155 to 157k, they listed for 155k previously, but im thinking this is before any repairs as is? are my methods of calculating the value of a home flawed? please help.. Also i looked for more comparable for these condos and none have been sold recently, does that mean this is a Great buy and hold property? is that how i should market this wholesale deal?
**Typo from the 1st message, not my offer price, but what i list it/Market it for will be $148k
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