Is there too much Repair Cost to be a deal?

Question

Hey Guy's,

I have this 'deal' but I don't see how a rehabber/flipper would profit from this. I estimated the ARV to be 50k, with repair cost of about 26-30k, and the seller is asking for 4k.

This is a big 5 bed, 2 bath house (1,866sqft)

Where I'm confused at is I'm wholesaling and if I estimate the flipper making a 15k profit but putting in 30k sounds like it's more of a loss.

Amy ideas?

Nancy Brook · Answer

I'm no expert rehabber, but from my experience in repairing my own rentals, I'd be concerned with unexpected things once digging into an old house. Joe is right; the market will speak. If you don't have a buyer's list, you can get the house under contract and advertise on Craigslist.

Account Closed · Answer

@Joe Villeneuve

I would want a 4k fee.

Ok, thank's for the tip I understand the importance of the buyer's list now. I had a feeling I would get a response like this, good luck on your side man.

Joe Villeneuve · Answer

I didn't see your wholesale fee in the equation.

Having said that, what you think, or we think, doesn't matter...all that matters is what your buyer thinks.  If you were selling this to someone on your already made "Buyers List", you'd have your answer.  This is another reason I have, ans start with,  a buyers list.