So I viewed my first hoarder house yesterday. It's a manufactured home sitting on a foundation on a double lot, so it would be viewed as a SNF. It's in a good area in the top 10 best school's districts in Georgia. The neighborhood has only single family homes. The tenant hoarded badly, walked out on the seller and the seller is desperate to sell. She owns 80k on the property mortgage and liens and she just wants what she owes. The property needs at least 40-50K rehab. ARV is around 190k, which I think is pushing it as a fix and flip. I'm thinking this would be a good buy and hold as the flipper would needs more wiggle room money for this to work and the fact is a manufactured home.. How should I wholesale this? Would this be a good subject to deal to sell if so how do you structure the deal as a wholesaler?
Thanks for any advice
@Consuela Adams . One way to do this deal is to write up an assignment contract for the 80k that is owed since that is what the seller wants. Sell that contract to a flipper for 100k so that even after repairs they are making a good profit. On the assignment contract set a closing date for 30-60 days to give you time to find a buyer unless you already have a buyers list and think you can close faster. It’s a win win for everyone. The seller gets relief from the house, you make 20k, and the flipper also makes a good profit.
@Jeremy Monroe thanks for the advice! I was thinking the numbers were really tight for it to be a good deal for a flipper. Between holding costs, realtor fees it wouldn't be much of a spread.