Potential First Deal Analysis. Is this a good deal?

[Seve Chong]

Hello everyone,

I am a new investor in so cal looking to lock down my first deal. I have read much about the 70% rule of thumb for purchasing properties. Given the market that I am in, it has been difficult for me to have offers be accepted within those parameters. I have time on my hands and am okay with a lower spread to get the experience and knowledge. Is that a good mindset? I am in negotiations for this property and I am not sure how to make this a good deal for all parties. Here are the numbers that we have:

ARV: 420-430K

Repairs: ~30K

Potential Offer: 325,000 (12 points annualized)

Any help would be greatly appreciated! Thank you so much.