working with a seller who would rather sell his condo cash than list it. I told him I could buy it feom him. He wanted to get 40k for it at first but I negotiated down to 35k. The average sale price of 1/1 condos in his subdivision sell for around 41-42k. He bought the condo in 2010 for 30k and it is in good repair. And free and clear. Would only need around $2700 to update appliances. He doesnt want to go lower than 30k but is anxious to sell. My question is do you guys think this deal is workable? The highest condo sold for 67k in april
Depending on the condition of the condo. Doesnt sound like a bad deal if you get it for 35k. If the comps average 42-42k but highest is 67k then when you sell try to aim for 50k with some high end appliances.
@Don Mead , what is your plan/goal with the property? That is key to know to be able to analyze.
assign it @brett russell, its a wholesale deal and the spread see,s to be ok. The condo is in good condition and just needs updated appliances.
Not a great deal. ARV $42. You buy it for $35k, add closing costs, holding, etc. The rehabber has nothing. Even if you didn't assign it, it's hardly worth the trouble.
Condos aren't the best investment, so you may want to confirm you have condo buyers on your list as well.
it would be more along the lines of a buy and hold. Condo is in really good condition. Average rent for a 1/1 goes for $675 a month. I'm meeting again today and going to negotiate down, starting at 30k and will walk away if he can't agree to 32k. I was planning on listing it at $50,000 but then he told me he just wanted a real quick sale all cash. So I got creative and
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!