Analyze This Deal!!!
Bonjourrrrr everyone!
Ok, obviously wet behind the ears here, I literally just made this account to ask this question so please don't butcher me for my ignorance but I have finally received my first phone call from a potential seller and I have listed the comps below. These are not comps that I have received from a realtor but just from looking into Zillow, Google, etc.
Single-Family [NEW JERSEY] Home
Bds: 4
Bths: 1
Sqft: 1098
End game: wholesale
Why selling: Has been sitting for some years now; Church next door owns property; last tenants let it go to crap; church doesn't want to continue paying the taxes on property (too high)
Zestimate/ARV: 239,268 (hoping to rehab it to 300K)
Neighboring properties: 230-300k
Asking Price: as close to 70k as possible; pretty sure I can get it down to 50k
Repairs: 70-100k+/- everything needs to be fixed
- roof (Google says: 7.5-8.5k)
- inside needs to be gutted
- soft floors
- walls
- electric (Google says: 8-15k)
- ceiling
- plumbing - pipes broke (Google says: 8-10k (copper) ; 4-6k (PEX))
- cosmetics (about 35k)
I will be taking my uncle who is a contractor with me tomorrow to physically look at the property.
My questions are:
1.) With a home that needs everything done, does 100k sound appropriate or does it typically cost more to rehab everything?
2.) Are the numbers Google gave me on the approximate rehab costs for each project close to being accurate or is it more or less expensive?
3.) What other numbers should I be worried about going towards closing besides: offer, wholesaler profit, offer to buyer, rehab, ARV, and buyer profit? I've heard about closing costs and paying off liens and such. I would like to incorporate those numbers I don't know about into my numbers sheet so that I can adjust my offer.
4.) If it's going to cost more than 100k (or not) to rehab, would you take this deal? How would you handle it?
5.) If 100k is about right for rehab and I am able to talk the seller down to 50k, would it make sense to assign to buyer for 100k if they can meet the 300k ARV? If not, what number is appropriate?
6.) Should I double-close if I can get 50k profit from this?
I think regardless this may be a great deal. I don't see rehab costs going too far over 100k so I believe as long as my buyer can make 70-100k on this property, it is definitely worth putting under contract. Yay or nay? Thanks guys and gals.
God Bless.