Good afternoon BP,
I have found a potential deal with a motivated seller and would like for you all to critique these numbers and the situation. Seller wants to 25k for the property, seller is also a investor and rented out the property for $550. The property is in a class c neighborhood as well. The Property Taxes and Appraisals offices for my city appraised the property for 33k which makes this potential deal better for Buy and Hold investors (I think). ARV for property would be 53-55k based on the comps in the neighborhood.
Property has new roof, new heater and new pluming as stated by the owner. Owner did say that the siding for the house was asbestos but there are no cracks or damage to the siding. I assume it is fine to seal and paint over the asbestos as long as there isn't any damage to it. I had a contractor friend of mine come in and take a look at the property as well. Only thing that bothers him some what is that the roof dips down a little bit. We believe its because the owner at one point put an AC unit up and removed some of the plywood from the roof. Also the ceiling showed a few water spots. Only other thing was that all 9 windows on the property need to be replaced, needs new flooring and the water heater may need to be replaced soon. My associate also stated that he could do the work for the property for 10k as long as the buyer provided the materials.
Given all the information I have given, does this sound like a doable wholesale deal? I believe it is doable but I am also not an expert, yet. I am very excited to get my first deal under my belt and I hope this could finally be it!
I look forward to your input.
Seems like this property needs a good amount of work on it. I think that if you go to an investor with a price and rehab estimate in hand about how much it will cost to repair then they might jump on it. Put the package together, send it to your investors and see what happens.
So, with all that information, what do you plan on offering him? (I realize he wants 25)
Thanks for posting @Antoine Martel I truly want to get this under contract. I feel like it’s a decent deal but I’m also not as knowledgeable as others on here. It’s a tiny place, only 704 square feet but it really does needs some TLC.
Originally posted by @Brandon Proctor :
Thanks for posting Antoine Martel I truly want to get this under contract. I feel like it’s a decent deal but I’m also not as knowledgeable as others on here. It’s a tiny place, only 704 square feet but it really does needs some TLC.
Theres no risk to you. Place the offer and then start marketing.
I’m thinking 22-23k @Brian Vaughan I really need to get a contract printed out.
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