All Forum Posts by: Bj Allen
Bj Allen has started 1 posts and replied 3 times.
Post: Please Help - Baltimore City wholesale deal analysis
- Wholesaler
- Clarksville, MD
- Posts 3
- Votes 0
Thank you Ezinwanne and Jacqueline!
I have my contractor headed down there today to take a look and give me a quote to convert it to a SFH. The seller is asking for 225K, which seems like it should leave enough profit to wholesale this deal with ARV comps in the low to mid 400s. We will see what my contractor comes back with.
Fingers crossed. Thanks everyone!
Brenda
Post: Please Help - Baltimore City wholesale deal analysis
- Wholesaler
- Clarksville, MD
- Posts 3
- Votes 0
Hello All,
This is my first time asking for help here in these forums, so please correct me if I make a faux pas. I am talking with a seller who has a townhome in an appreciating area of Baltimore City which is near the water and known for it's high-end townhome renovations. The comps suggest an ARV of 410,000 to 425,000 if it was renovated as a single family.
The tricky part (for me) is that it is currently being rented as 2 separate units. The upstairs unit should rent for 1350 - 1400 (he is currently getting 1300, but the tenants are moving out Nov 1) The lower unit should rent for 1100. (again, the tenant is moving out in 90-120 days.) The lower unit is ADA equipped for a wheelchair user, and will require about 5-7K in repairs to convert it back to a non-disabled use apartment. He has rented the house successfully for several years through a local management company. Both units are in great shape with nicely updated kitchens and baths.
So - it seems there are 2 types of buyers that I could wholesale this house to: 1. A fix and flipper who would want to convert the house back to a single family home and sell it for top dollar. OR 2. A buy-and-hold investor looking for the 2400 to 2500 dollars in monthly cash flow.
My question is... What would those two buyers be willing to pay? I am not familiar with the costs of converting a two-unit to a single family home because I have never done one. I am also not familiar with what a landlord is willing to pay for a 2400-2500 monthly cash flow building. I need to feel more comfortable with the numbers before I try to put this house under contract, so I really appreciate any and all input from the experts here.
Thanks!
Brenda
Keesha,
Very happy for you that you got your deposit back from HUD and that you seem to have moved on to better success. If you don't mind my asking, which program of Cris Chico's are you now following? He has so many. I have looked at a lot of his free video training, but never purchased anything from him.
Wishing you continued success!
BJ