Updated over 12 years ago on . Most recent reply
What's wrong with my deal (please help)!
I have a deal under contract. I got it from a rehabber that ran out of money. The house exterior is 95% complete and looks really nice. The inside needs about 30k in rehab costs. The address is 726 E. 3rd St. Delphos, Ohio 45833. It is a 4br/2ba w/ 2,148 sq.ft. It is selling for 40k cash, which would give me a nice profit. However, I have sent it to all my cash buyers, and no one is interested. I looked at the comps and they are over 100k, which I thought would be a no-brainer. Maybe my numbers are off. Please help!
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Well, off the top of my head... 40K price, 30K repairs is 70K. You're already at 70% of ARV. Repair cost is probably underestimated because optimism rules. Then... you need closing, holding, closing again plus a profit for the wholesaler... Can't get blood from a turnip.