Cheapest sfr by Zip Code
I'm looking at a very poorly marketed sfr 3/2/1 in a nice Fort Worth TX suburb. I've got a meeting at the property this saturday morning. He's asking 75k which if it were on the mls would be the cheapest list price in this zip code by about 50k. I've done a drive by and it appears to be in good shape and the seller seems to think that I'll like the interior condition (we'll see). I'm also apparently the only buyer that the seller has talked to at all after 2-3 months of trying to sell. He bought it in 03 when this area was much more rural and has indicated that he doesn't owe much, it's currently owner occupied.
My issue is that all the comps that are in the same neighborhood have sold for around his asking price. The leased comps are between 1000 per month and 1200 per month. This one should be more toward the 1200, the lower comps are 2/2/1's.
Plan of attack:
1. Owner Finance at a price of 65k or less with less than 10k out of pocket.
2. I would try to get him to sell me a 6 month minus a day (it's a tx thing) option so that I can use traditional financing once I pull cash out of my house in early 2015.
3. Get it under contract at 50-60k with a seller chosen cash close date and try to make some kind of wholesale fee.
Would any buy and hold investors pay the full market value of a house like this as long as the cash flow was ok? If I were to wholesale this property I know that normally I'd shoot for pricing it at 70-80 percent after repairs.... but typically the rent ratios in this area don't look as good at fmv. Would I be stupid to try to market a wholesale purely for cashflow and make it clear that it's probably only appropriate for a buy and hold? He's indicated that he is negotiable so I'm expecting to be able to knock at least 10k off of his asking and hoping for more because he seems motivated.
Special thanks to my realtor for his help with the comps and generating an awesome cma! PM me if you need an investor friendly realtor.