Hello BP:

New guy here working numbers and information on a few things but have one I found today that I could use some advice on.

Property Info:

2Bed/1B

927sqft (it looks a lot bigger in pictures and drive by??)

garage

.26 acre

2014 tax assessment = $154,000

Close to two major highways (actually land abuts major highway)

Zillow Zestimate: $154,000 (which is exact with tax assessment)

*******************.com: $227,576

appraisal.com: $200,352 - $271,064

Properties on that same road and next street over are all showing in the high $300,000 values (according to the web) ranging in size.

I don't have MLS access as of yet so that's why all the numbers from the web.

Looks like they listed thee property 8/2013 and removed listing 1/2014 asking $130,000

It does have photos listed on the above sites and shows a flooded basement and the potential for updating. I would guess on the high side of $30,000

It is vacant and the owners are in town.They purchased this property via tax lien/sale/foreclosure for about $5000 (<---yup that's right)

I would like to get in touch with them for more info on what their plans are but since they did list it I believe they are looking to sell. Not sure if they are "motivated" or not though.

If I go with the $130,000 they were asking here is what i think.

130,000
x .70
= 91,000
- 30,000 in repairs
= 61,000 - offer

OR would you go lower since they only paid $5000 in 2011 I would be wholesaling or assigning it so there may be a fee in there somewhere as well. I believe this to be a desirable Central MA location.

????

Any advice would be great!!

Thanks in advance!!!

For the sake of answering your question about what to offer we will just say that your numbers are right.

If you are planning on wholesaling the deal you need to reduce that $61K by at least the minimum fee you want to make on it. At 70% ARV less repairs that is what your investor wants to buy at so if you don't get it for less it will be hard to squeeze out anything for yourself.

We can assume that it is not worth $130,000 as is since it didn't sell when listed. I don't consider the listed price as relevant other than it tells you what it isn't worth. Without any other information I would consider the Zillow price of $154,000. I really use Zillow for the comps and calculate my own value. Using the $154,000 I get $73,533. If I were going to wholesale I would have to get it less for less than that.

Good Luck.

Bill