Wholesale- Deal or no deal ,what’s your input?
Hi BP community
So here’s the situation and before I start I would like to inform you all , i don’t think it’s a great deal but I would love others opinion.
My partner came across a homeowner who wants to sell his property. He is currently renting the property out to a tenant.
The house is technically a 2 bedroom 1 bath with a unfinished basement but the homeowner is adding the unfinished basement as a bedroom making this a 3/1.
The homeowner wants to sell no less than $140k but here's my issue the ARV of the property is $167,594 based on comps ( we still haven't estimated the rehab cost).
Now the comps are renovated and one sold for $150,000.
After doing my math and subtracting 70% the MAO was about $117k. He owes $115k on the house. I was willing to offer $120k but the homeowner is fixed on $140k as his number.
How would you handle this situation? I already decided that if he doesn’t accept the offer of $120k within 5 days I’ll rescind my offer. I just really don’t see it being profitable if we were to go in at $140k. My reputation means more to me than trying to wholesale a deal with not much room for profit.