How would you proceed?

[Vince Beusan]

I have a question for the forum.  This would be the first time question to post - and reader of many posts, I'm a student of RE for the past nearly (2) yrs.

The strategy is to wholesale a property and target to net $5-10k to a buy & hold investor.  

I've submitted an offer for a deal @ -20% asking price to the FSBO property (asking $249k), however, I only was given the intersections of the location, which is all of the information provided. The motivated seller replied interested to deal and wants to meet tomorrow on my offer for $199k. I received the full legal address and then ran comps on the property - the ARV comps show $155k. The one variable I'm not certain of is the comps I have run, which I need to trust but verify.

Pictures from home appear in good condition with possibly just paint & carpet, estimating 15k

Starting with the end in mind, I would have a couple strategies, or exit strategies if I were to target rehab buyers, and/or buy & hold at the same time. However my target purchase price would need to be roughly 70% of ARV - rehab costs - assignment fee;

155k - 70% of ARV = $108,500

$108,500 - $15k rehab

$93,500 - assignment fee

= MAO of $87,500

Now doing the math and writing this all out, & seeing it on my screen - I have my answer.  Its no even close to a deal at $199k.