Deal or no deal Its a property in myrtle beach arv is around 145K they want 90k but negotiable it was flooded in the storm they completely gutted it and sprayed all thats left is to rebuild 2 beds 2 baths it's an A or B neighborhood gated community the seller says they want an honest offer but doesn't want to be robbed.
1. Is there a mortgage left on property? If so, how much?
2. They want 145, BUT what are the comps saying?
3. What are estimated repair cost and cost of damages?
Me personally, NO DEAL because unless they're truly ready to sell and ultimately take advantage of your help (investors are problem solvers that specialize in creating win-wins) then you could waste time at a profit margin that only seems like a win for seller and not another investor.
I like to keep the ball rolling. So I'd submit an offer and keep it pushing. Motivated sellers know you're there to help but also need the deal to make sense. Lots of fish in sea, stay focused and remember TIME IS MONEY.
No mortgage and your right time is money, imma just make an offer and move on.
I know the MB area pretty good, but dont recall where there is an A/B neighborhood that the homes are only $145k, especially a gated community. Is the home considered to be in a flood zone? Will it become one. I believe there is a big push for rezoning and making additional areas that were not considered flood zones before, become them now. So keep the extra premium in mind for your numbers if you plan to get conventional financing after as they will most likely require flood insurance and that can be pricey. With what numbers you have there, if you are looking to BRRR then I would bet you wont make much unless you park a lot of cash into it and are good with cashing out your rehab money.