Analysis - 3b/1b in El Paso Tx
I didn't realize I could post a potential deal to let all of the great members of BiggerPockets tear it apart! I love this website... thanks Josh Dorkin! And my apologies to the three guys I emailed directly to have them look at this deal. I would have posted the email here had I known about posting deals.
I'm putting address and everything if you guys want to check the property out on Zillow and the local appraisal district (www.elpasocad.org//mainsearch.php?mode=address) Here's the deal.
I am potentially buying the hose from a wholesaler/investor who owns a franchise in this area. By coincidence, we found out that he is buying the property from someone we know for 42K. They don't know that I know this, but now I know how much they want to make off of me.
3 Comparative Market Analysis have been performed. One by the seller and two by me. The "subdivision for this home is only that street, which has about 20 or so homes on it, and only one sale since Nov 2006. This caused the 45K CMA. The other two CMA's were done going outside of that street within a mile radius (guestimate).
I will not be using any of my own money. I have a LOC secured, an approved loan for up to 90k at this point. (I told the broker I wanted to stay under 100K FMV)
4428 Skyline Zip: 79904
Asking price: mid 50's (no definite number given)
CMA's: 76K ($66/sqft avg), 70K, 43K.
Assumed FMV: 62K-69K. I honestly don't think I can get more than 62K.
Repairs: 7K-10K
ARV: 43K-48K
Offer: 33K-41K. I could live with 46K just to experience my first deal and live through the process. I figure worse case scenario, I would not make any money, I wouldn't lose any money at 46K, but my first deal would be under my belt.
I've got pictures of the property inside and out if anyone would like to see them. I don't know how to post them within the text here, so I'll email them if you would like info on them. Thanks for your time on this guys.