Distress Deal in Upstate New York

Distress Deal in Upstate New York

Brooklyn, NY · Member since 2013 · 14 posts · 0 votes

Hello BP,

I just closed on my first rental property and now I came across a deal for a 2 bed 1 bath home 981 sq ft built in 1910. the place is boarded up and they are selling it for 7k. I am going to go in with a low ball offer because the value of the place when fixed is no more than 20k. I am thinking it might be best to assign the contract to a rehabber. I am going in with a 2k offer. Do you think this deal would be good for assignment?

All advice is appreciated.

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  • Britt AbbeyPro Member
    Investor · Lowville, NY · Member since 2013 · 65 posts · 18 votes
    12y

    I'll preface this by saying that I'm not a routine flipper or wholesaler. That said, what are the costs to repair? Closing Costs? Holding Costs?

    At $20k ARV how much profit is left for the flipper after you assign the contract and they pay all of the above?

    On the surface, it seems like the margins would really slim to entice someone to pay a middleman.

  • Rental Property Investor · Brookline, MA · Member since 2013 · 1k+ posts · 777 votes
    12y

    I would get in there and check out the basement. At 2k the beams used might be worth more than the house. Split it with a recovery company, not a rehabber. Clear the house out, sell the beams and sell the land as a building lot.

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