Is this a good deal.

[Michael Algarin]

Hi everyone I am very new to wholesaling and might be coming across my first deal. Im so nervous on how to move forward with this. I found a home for sell and the homeowner is willing to sign the contract, I just need reassurance that this is a good deal and that I would be able to sell it. Here are the details.

3 Bed, 3 Bath 1,100 square fee selling for 350,000.

No structural damage, needs about $40,000 of work.

ARV is $425,000 which a couple homes on the same street last year sold for around that.

Please help me I have no idea what to do. Will a buyer even spend that much money on a home? Every book I read or podcast I listened to never discussed wholesaling homes in this price range. Can it even be done? Thank you for your time. 

[Joseph Ball]

Spread too thin for that much investment. Figure long holding costs, because the percentage of buyers in that price range is small. Just think of a chart with house values ranging from $100,000- $400,000. On one axis, picture house prices. On the other axis, picture buyers.

The number of actual, qualified buyers drops significantly, as prices increase.