Help

[Carlos Taylor]

Hello BP ,

My name is Carlos and I was just looking for some direction and advice! Ok here is the deal, i've have been working with a realtor on a short sale for about about 6 months now ... the property is a condo and the bank wanted 305k at first but i guess after the talks they seem to want to agree on 288k the ARV is at $331,360 and may need about 5k in work!

I'm a newbie and flat broke not sure how to handle this situation! the owner of the property would be willing to rent the property back for a year if i did a buy and hold... the property is in southern California....i guess what I'm asking is if I was a seasoned investor how would they handle this or what numbers would i need to get to make this a decent deal???? My realtor just called me today and is asking how do i want to move forward with this property!!!

Thanks Carlos :roll:

[Jon Holdman]

First, the bank that approves the short sale will prohibit you from renting it back to the current owner.

$288K+$5K for a $331K fix and flip is too much, even for CA. That's 89% of ARV and there's no way to make any money after paying all the costs on the purchase and sale.

If you're flat broke you're going to have a hard time getting an investment loan.

You need a LOT of rent to make this worthwhile as a buy and hold. Something like $4000-5000 a month.

Its way to thin of a deal for most investors, so I don't see you being able to wholesale it. This is effectively a retail sale. Now sure why you're even involved.