REO Property Advice for Fort Washington, VA SFH

1 Reply

Hey BP! It has been awhile since I posted, but last time I received great advice and love the 4plex that we purchased four years ago. Thank you again for your sound advice and being willing to share your experiences.

My wife and I are trying our hand at wholesaling to generate some cash for our next investment.

Today I found an REO that I think has really good potential for a wholesale property.

The details:

The bank is asking for $189,000 but foreclosed for $174,000 two months ago.

ARV based on comps is 260,000 (one was next door and sold at the end of November fully renovated)

Estimated Repairs 45,000 (this is $30 / sq ft estimate for a major rehab (needs carpets, paint, new appliances, etc.) the pictures look like it may need a new roof. The pictures also show some smoke damage above the fireplace and in the living room. I still need to do a drive by tomorrow and speak with the listing agent to see what else I can figure in.

After I make sure there are no other major repairs I would like to offer (260,000*.70)-45,000= $137,000.

Please let me know if I should be more concerned about the smoke damage around the fireplace than just paint and carpets.

Beyond the offer price I am hoping the community can also help me answer the following:

Will a bank accept an offer with an "or assigned" buyer so that I can assign the contract and do a double closing? If not, how do you work around this? Do you buy it yourself and then sell it and pay two sets of closing costs and short term capital gains tax on the sale?

Thank you in advance for any advice you can provide regarding this potential deal.