Need help with analyzing a deal for wholesailing a foreclosure home
Hello there, BiggerPockets community!!!!
I'm a newbie still learning in the real estate investing. I need help analyzing the deal please!
I've came across this lead today and it was a foreclosure 1,890 sqft. single family home built in 1960 and listed for $38,500. The house is located in a decent neighborhood. I want to wholesale this house and sell to the rehabbers but don't know if this is a good deal to pursue or not? I've never done a deal on foreclosure home before and really need help with it. I did my comps and found out that houses sold in the last 6 months in this neighborhood were priced between $63,000-$92,000. However, the condition of this house is in pretty bad shape. It has no utilities and is needed a full rehab. I'm talking about holes in the walls, missing kitchen cabinet, damaged wood floor, doors and windows, plumbing,electric unit, ect. I think the estimated repair cost could be up to $35,000. Therefore my questions are:
1.) From you guys experiences, would I be able get a great deep discount from the bank as this house is in a poor condition? by how many percentage?
2.) How to wholesale a foreclosure homes? Is wholesaling going to work for this deal? I don't really know how a foreclosure process works so please advice?
I want to thank everyone who participates in this discussion in advance. Really appreciate all the comments and advises.
Thank you so much!!!