What do you think of this deal?

What do you think of this deal?

Hugh NelsonPro Member
Investor · Ashburn, VA · Member since 2013 · 21 posts · 7 votes

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Seller is very motivated to sell her mother's former home, which is currently in a hoarder condition (hoarder was evicted). I have good comps that show the ARV is about 264,000. We are estimating rehab costs, but offhand I'm estimating $40,000. I prefer to hold, if I can, and I'll ask for a seller balance carry-back, but I think she wants the cash. BRRR seems like a good strategy, but what would you recommend? Thanks!

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  • Investor · La Vernia, TX · Member since 2015 · 1k+ posts · 865 votes
    8y

    Howdy @Hugh Nelson

    At that Purchase price this is not a good BRRRR deal. With only 6.3% CCR I would not consider this a good investment period.

    To make it more workable the Purchase price would need to be more like $130K given the $264K ARV and $40K Rehab estimate.

  • Hugh NelsonPro Member
    OP
    Investor · Ashburn, VA · Member since 2013 · 21 posts · 7 votes
    8y

    Thanks, John Leavelle!  I've seen the house now, and it requires very extensive work to repair and update the property.

  • Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    8y
    Obviously no ..
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