Get it under contract?

[Tony Marcelle]

Here is what I have. I have a seller contact me from one of my direct mail letters looking to sell her house. The seller wants $62k for the house. House is currently occupied with a tenant paying $725 per month on a 1 year lease which expires in September 2017. No repairs needed. House is section 8 approved. What is my exit strategy? And what price should I get it under contract? 

[Lee S.]

ok, well, I'm not saying I agree but the "typical" wholesaler formula is 70% of ARV -repairs - assignment fee = what you need to Contract it at. However, you may be able to flip this to a landlord for a higher price then above formula suggests because it's turn key. Lots of turn key investors on BP, if you lock it up you may be able to sell it here. Never thought of this before but yi could list it on SoCal and California Bay Area Craigslist as a turnkey.

The only issue I have with wholesaling is if the wholesaler is dishonest.  If you get the best price you can but tell the seller you need to find an end buyer and you may not be able to, nothing lost for either of you but a little time.

If that house was in California I would buy it with no hesitation.