hey everybody I have a question regarding wholesaling tenant occupied properties ,I am farmiliar with the 70% rule on distressed properties but I can imagine that wouldn't apply to a house that is already tenant occupied .With this being my first possible deal I got a call from a landlord who has 2 rentals and wants to get rid of them here are the numbers
asking price 40k 1030/month on rent tenant has been there for 8yrs
comparables 45k vacant
for those with experience wholesaling tenant occupied how do you come up with your numbers
On the face of it I'd say they look pretty hot, but there are questions that come to mind. What condition are the properties in? It could be that they both need a new roof, new a/c...or there could be some other (expensive) issue that could play into it. Is the $1030/mo in the ballpark for rents in that area? Is it too low/high?
are you wholesaling this property for free? If you get it at 40K, what is end buyer getting it at? It's nearly at 90% ARV before any rehab as Jim mentioned.
The roof is 5yrs old and it does not need any major repairs apart from paint and a new carpet,it has had a tenant for the last 8+ years and she does want to move out,rental comps are 950-1100.
The landlord asking price is 40k but he said he is flexible on the price so no i would be wholesaling for free
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