Advice on a deal

Rehabbing, Fix and Flip, Rental Properties
1

I am looking at a Bank owned property that needs a lot of work. Here is a break down of the numbers

ARV - $95,000
Repair Cost - $30,000
Asking Price $79,900

I will have to use hard money to do this deal and I plan on retailing it when it is done.

With all cost the most I figure I can offer is $31,750 and still make any money on the deal.

65% of $95,000 is $61750 less repairs = $31750

All expenses including closing costs, hard money cost, repair cost would equal about $49,000 (not including the purchase expense). At a sales price of $95000 that would leave a profit of $14,000.

Does this sound right and does it sound like a decent deal.

Also, how can I make the offer appealing to the bank since it is so far below their asking price? They have had the property about a year.

Thanks

Jeff

2

Dont forget Holding cost as well as Agent’s Commission if you choice to have someone sell your house.

Ant. Realstart.

3

Howdy jdowdle:

There is no way to make a low offer look attractive. But there is no way to offer more than you can afford to pay. Other investors like yourself are looking at the same deal and probably have made the same offer. Just make the offer and that is it. If they say no then say bye bye and look for another deal. I too get tempted to some how make the deal work and offer more and all of a sudden you are working for chump change. Do not get caught in that trap. You need to net net net at least $10,000 on a $100,000 deal or it just is not worth the risk. PERIOD

Later LOL