Wholesale or buy and hold?
Hi BP:
Here's the deal, literally:
The four houses are in the suburbs of Chicago in primarily stable locations. My problem is that the deal seems skimpy for a wholesale so I thought buy and hold. My background in commercial made blanket loan seem like a perfect fit but I'm not sure where to look.
The properties are being bought w/deed from a tax sale buyer.
Price 19,500
30,000
32,000
and 20,000
for a total of 101,500
Two have renters paying 500 and 1100 to the tax buyer currently and I have two renters lined up for the other two. If I wholesale I'd be looking for 3000 for the two with renters and I'd keep the other two for the cashflow charging 750 each.
My estimation is that if the buyer wanted to they could put 15-20 into the rented ones and the ARV would be around 55-60. See too tight for fix/flip, but good for buy/hold strategists. Property values are in the 50-70 range for O/O
But if I keep all four, I'm getting a nice cashflow that can help me in my primary business at the moment.
The wholesale seems to only work for 2 of the four if I'm right but I'm new so I may be way off base. But I doubt it.