I purchase a 3 bed 2 bath for 110k. ARV comps suggest 185k. With repairs I'm rounding up to 20k that already had a built in cushion from 17k. I feel confident that I can resell it in its condition beween 160-170k as last week a 3/2 house in the area sold for 177k cash. That house was 1100sq feet and this one is 2000sq. Do i have a deal?
Probably, especially if you really know how to estimate repair costs and if there isn't anything weird about your house. In fact, if oil wasn't dropping so precipitously I would probably look for the high end $185K vice $160-170K dependent upon what you did for rehab. If you did a cheap looking rehab, then stay low, if not then I'd go higher.
Something that great always sounds "too good to be true". It sounds like you have a great opportunity. If you have a good relationship with a contractor, I would ask him to walk through and check out the major items - foundation, roof, etc. There may be something that is seriously wrong with it, and you will want to know BEFORE you buy it :) Best of luck - I hope you make some serious cash on that deal.
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