Any Advice on This Duplex Deal

[Bob Crane]

Foreclosed Duplex in a small town.  Class C.  Each side is a 2/1.

List price - $101k

Rehab costs - $35k

ARV - $130k

Taxes $3650 annual

Requires flood insurance.

Rehab time - 60 days

Rent possible - $850 per unit ($1700 total).

It's under Fannie first look for 5 more days.  So it's unclear if there are any other investors looking or not.

What kind of offer would you make?

[Brent Coombs]

@Bob Crane, one mantra around BP is: You make your money by buying right. A follow-up mantra is: You should be looking at buying it, all-in, for no more than ~70% of its ARV. Here, that's $91k, less $35k, = Maximum Offer of $56k.

So while the Seller may WANT full as-is market value, why should YOU agree to PAY market value?

Can you see any flaw with that argument? Cheers...