Is your exit strategy selling retail? Why not leave a ton of equity on the table for a buyer and just wholesale it. There are so many short sales out there not with little or NO rehab necessary other than cosmetic. Why in the world would anyone even deal with a major rehab unless 1) they enjoy that kind of thing, 2) you have it sold beofre you even close 3) your clueless.
Wholesale flip your short sale to a landlord so all he has to do is paint and carpet and he has a ton of built in equity right from the get go so he can rent it out much easier and less than his competition for the same 3 bdrm 1.5 ba.
Selling retail could possibly be an exit strategy a shortsale that I am currently working on. Home was built in '99. Just needs 800 sq.ft of tile and a new swamp cooler.
I was thinking worse case scenario, I get the home at 80% of market value less repairs. I could sell retail to a buyer at 85% of market value. I think this home makes a good candidate because its kind of in the boonies. Only about ten other homes for sale in said boonies. Im thinking I could call each agent and ask them if they might have a buyer interested in purchasing a home at a 15% discount w/ just minor fixup.
Im just trying to think of other ways to make money in shorts when bank doesent give a really nice discount. Any thoughts?