The owner is asking for $99,000 and the ARV just includes cosmetic work which is painting.We did our comps and its worth upto 125,000 is this a good deal??
need more information to evaluate correctly
For a typical Investor, there is not enough meat on the deal. You usually want to be around the 70-75% all in (Acquisition, rehab, acquisition costs, holding costs and exit costs).
With that said, if your strategy is buy and hold then I guess you need to consider what your cash flow will be and if you're happy with the overall return on your investment.
If your strategy is a Flip, then you're cutting it close IMHO.
You could consider a JV with the seller worry you bring in some money to get it properly rehab and then resell it and then pay him when the house sells his 99000 and make 10,000 15,000
We're trying to wholesale it..And it just needs painting in a couple rooms and we're selling to an investor that we have lined up already or should we paint it ourselves then sell it for more?
It's in a great, quiet neighborhood.
what is a JV? @Brian Gibbons and it justs needs painting and should we paint it ourselves then sell it to make more of a profit? We're putting it under contract and selling to our investor we have....
@Elijah Crowder , JV means "Joint Venture" (in partnership with other/s, maybe even including the Seller). The important issue here is, who is going be YOUR Buyer? Those numbers would be considered far too tight for pro wholesalers. And even if your fall back position is "oh well, I could always rent it out, or, live in it myself", I reckon those numbers STILL don't add up to being a bargain. My 2c. Cheers...
@Elijah Crowder Of course, nothing is stopping you from doing what other wholesalers do:- put in an insulting offer of say, $59k, then be prepared to walk away once your wholesalers "Maximum Allowable Offer" is rejected...
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