Need help with deal - Deceased owner no heirs

4 Replies

I've done only a handful of normal wholesale deals before and still consider myself new but this one is a little different for my anyway. The details are:

The owner was trying to sell his house but passed away before it was sold. No heirs. I've been talking to the person he named executor of his will who just wants to get rid of it.  They rented it out while trying to settle his estate. Tenants trashed the place, carpets are disgusting, holes in walls, etc.

Mortgage on the property is around $61000. Rented for $900 but i just checked and 3br's are going for $1200-1300. He wants $70k. 4bed/3bath (1 bed and 1 bath is an attached mother in law suite with its own kitchenette) ARV im estimating to be around $170-180k. This is in the Grayson Valley / Center Point area of Birmingham AL.

My question is really what should i do here? Traditional wholesale? Subject to? They seemed willing to sign the deed over to me. Getting some analysis paralysis with so many things going through my head and could use some help. 

Originally posted by @John Patton :

You think that you can get 12-1300 month rent in Grayson Valley ? I would really check those comps again. Good luck JP

 What am I missing here then? Location is just south of the Grayson Valley Country Club and that seems to be what everything is going for?

Being close to Grayson Valley country club used to mean something 30 years ago but not for me today. You got a decent high school there but within a short distance from there people can send their kids to Trussville for about the same amount of money, would you not agree? Hmm, Clay-Chalkville or Hewitt Trussville? Which one would you choose. For that kind of money I follow the schools. Good luck JP

@Trey Crusey Are you trying to determine whether this is a deal or not? If you are here asking BP then my guess is you arent very confident in your numbers.

You said ARV is 160-170k. What is the estimated repair cost? If the house doesnt need a ton of work it seems like a pretty straightforward wholesale deal. Unless you are considering buying it yourself and keeping it as a rental? You really dont want to use Zillow for comps. Especially rental comps because Zillow is going to show you what is on the market for rent...which means the houses you are looking at HAVEN'T been rented. You want to know what houses are actually renting for. How much are people actually agreeing to pay every month. Same thing with comps. MLS comps are what you should be using to determine ARV as well.