Need advice for first wholesale lead!
I received my first call and the seller is interested in selling because his family is looking to move. He purchased the townhouse for $270,300 in 2008 and has approximately $228,000 - $230,000 of debt on the property.
Doing some basic due diligence without seeing the property, the ARV is $260,000, the fixed cost estimate to apx $20,000 and rehab cost could range anywhere from $20-30k.
Estimating for at least a $20,000 flipper's profit and a $5,000 wholesale profit, the MAO comes to $185,000.
Please provide any feedback as it will be much appreciated !
Thanks,
Joe
Most Popular Reply
I suppose the math is there but is the seller motivation there to take an offer of $185k? If they owe 230 are they in a position to take the loss plus bring 45 to the deal? Based on what we know so far that seems like it might be a stretch.
I hope it does work out for you though!!!