Analyzing a deal, need a little guidance...
Hey all!
I had a very motivated seller come to me today, with a home he purchased 4 years ago to rehab thru HUD. He's now taken on too much with the home, and in his words "Doesn't care what what anyone does with it, just wants it gone, it's gotten the best of me". This was late last night, so I haven't been able to get a price out of him yet, but I'm not worried about that at this point. I do know that he has done some work as new windows, some landscaping, work inside as well.
I pulled comps from the last 6 months, it's a small community located about 20 minutes from our large metropolitan in Iowa. House built in 1896, 2 story, 3br 1.5 bath.
A fresh rehab sold on 2/12/18 that was built in 1900 and very similar for $111,9000
In January another property similar in size and year, not rehabbed sold for $112,500
And early January the third comp sold for $90,000
Based on the information, here are my numbers that I came up with, but feel like I'm off? HELP
ARV- $90,000
Rehab Costs- $20,000
Closing/Holding Costs- $1500
Misc Costs- $2500
Assignment Fee- $5000
Total Expenses- $29,000
ARV- 60%- $54,000
Most I can sign for would be $25,000
I know I'm missing something, and it's late. Any help is appreciated! I don't want to jump on shooting an offer and end up being way off on this one.
Thanks in advance!