Specialist · Rochester, NH · Member since 2018 · 24 posts · 2 votes
My company is looking at one side of a condo. Just curious what everyone’s opinion is. As a wholesaler, would this deal be worth it to another Investor? It is worth about 215,000 give or take. The investor would pay 180,000 tops. Good shape, up to date. Just wondering if the numbers would be worth it to the investor.
Depends on what is needed to make it worth $215k, what kind of closing costs on both ends are typical for your area, etc. $35,000 spread sounds ok, until you remove all of those things I mention above and then it really doesn't look like much of a deal.
This is assuming a flip. A rental would be reviewed completely different.
I'm not a rental investor, but there is a LOT of info someone would need. Taxes, rehab needed, rents in the area and I'm sure a bunch of other things. It possible to make sense as a rental.
@Robert Larson As mentioned above, assuming nothing needed to be done, paying for $180k for a place worth $215k is decent. However, why wouldn't the seller just list it on the MLS and pay a 6% commission instead of taking a $35k hit?
You would need to post lots more regarding rental info for people to really be able to comment on that. Condos tend not to be great rentals: you can have high HOA fees, restrictions on renting, etc.
Robert we dont have enough information, when my company wholesales a condo here is the information we provide to our buyers so THEY can decide if its a deal:
ARV
What repairs and upgrades are necessary to hit that ARV and what will that cost
Rental Value once renovated
purchase price
monthly HOA fee (only for condos)
Without this we can all only project what we like to pay.