Priest Lake, ID · Member since 2017 · 53 posts · 21 votes
I have a tax client (I am an accountant) who has a rental home in Rio Rancho, NM in a gated community, that he would like to liquidate ASAP. I have advised him that selling it wholesale would probably be the quickest and easiest way to proceed. He would like to see $290,000 out of the deal, with a zillow estimate on the value at $347,000 right now. Home was built in 2012, and seller purchased the home 4 years ago. It's had one tenant the entire time. I am not certain how deals are typically presented here, if I give the address in this post, or do that via private message. Please let me know if there is any interest, or if I am doing anything incorrectly with this post. :-) Thank you!
Lender · Chicago, IL · Member since 2025 · 204 posts · 101 votes
7mo
First, the ARV and rent assumptions need to be backed up with actual recent comps and rent data specific to that area of Rio Rancho. Wholesale deals can look great on paper, but if the comps are weak or distant, the value might not materialize the way the contract suggests. Make sure the comps you are using truly match size, condition, and neighborhood.
Second, it matters what your client’s exit plan is. A flip needs a very different evaluation than a long-term rental. For a flip, rehab costs, timeline, inspections, and resale demand all have to be tight. For a rental, cash flow, vacancy assumptions, and long term rent stability become more important.
We also always look at the carrying costs and build conservative buffers into the projections. In markets with slower movement, properties can sit longer than expected, and taxes, insurance, utilities, and financing costs add up quickly if the timeline stretches.
From a financing perspective, lenders are going to want to see comparable rents and sales that support the purchase price and projected income. If your client plans to hold this as a rental, the rent needs to cover the debt service with room for maintenance and reserves.
Wholesale pricing can be attractive, but the assumptions still have to stand on solid data. Conservative underwriting protects both your client at the buy and protects the lender if financing is involved. If you want to compare notes on comps or rent projections for this area, happy to help.
Priest Lake, ID · Member since 2017 · 53 posts · 21 votes
7mo
Thank you! I will see if I can get some sale and rental comps for potential buyers. This is the client's exit plan - to sell it. He is the current owner, so no lending required for him. I might have used the wrong terminology. He is hoping to sell it quickly by selling it under FMV.