I have a potential wholesale deal where I would like to bounce the numbers here and see if it makes sense.
Its a SFR 3 bed, 2 bath 1443 sqft in Memphis. Has fireplace. Has double size lot. Zero mortgage, taxes current
Calculated ARV: $71,520
Estimated Repairs: $12,987
First Offer to Seller: $22,420
Max Offer to Seller: $26,377
Do my numbers make sense?
Without knowing the address its hard to say if the ARV is accurate which determines what the offer could be. From your basic numbers it doesnt sound too bad but again, lots of missing information needed.
If you can acquire the deal at that price and have a buyer, it's more than a good deal. I think you could go higher on your max offer and still come out with a quick profit. However, you offer is not a bad place to start. The 70% rule has a max offer of about 33 or 34. starting offer at about 28 to 29. So, you're in good teritory if you believe you can get it at that price. Of course that's if your competition isn't to stiff. Almost everyone know these margins and will make offers accordingly.
what are the lowest comps in your area? By the looks your calculating at 60% ARV with about $7k profit or 70% with $10k profiit spread? its not bad but not only do you want to know your ARV on the high side you want to know if that is a rental area or a Retail, homeowner area. That will change your repairs cost by alot. Again you want to know your lost comps too, if you are trying to sell wholesale at $36k and your comps are in the $20k-$25k then you have to consider how easy it will be to sell.
In Memphis without a street and zip it is impossible to say if your ARV has any meaning or not.
Dean Letfus, Memphisinvestment.com | 901 264 8674 | http://memphisinvestment.com/
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