Updated over 9 years ago on . Most recent reply
Motivated seller...Deal analysis? Just questions
Hello,
Working on my first potential deal. Seller had it listed with an agent for 86k. It is really outdated but no more than cosmetic needed. House has been on the market for 135 days with no offers. House was recently broken into and all copper pipes stolen out of basement causing a water leak. The basement is unfinished. ARV 85k. The seller is an absentee owner who is just tired of the house and wants the burden gone. Her exact words. Not sure how much to replace pipes etc...thinking 15k is a safe bet. Not a great flip area, as most properties are rentals. Market rent $1056 median, 1025 average. I know the formula for flips 70% of ARV etc... Do landlords follow the same rule? What would you offer? Any advice or tips.. Am I in the right area for posting? Look forward to reading your responses.
Most Popular Reply
Not sure why you say it is not a good flip area. The demand for rentals is the strongest it has been in over 50 years. A lot of investors out there want a good turn-key, cash flow rental. Moreover, home ownership is the lowest it's been since the 1960's. That bodes well for building a portfolio of rental properties.
In summary, your likely exit would be to someone who wants a good rental not someone looking to own a home. The key is to buy right and fix smart so the property throws off a good NOI.