House on "Main Street"...

Bird Dogs, Wholesaling
1

Hello All,

Here’s the deal. I found a house (by word of mouth) that is a really nice 1500sqft 3BR 1.5BA split level with a finished basement & detached 2-car garage that sits on .1 acre, but conveys with an additional plot of .23 acres. It’s in a relatively decent pocket of the city, however it is that problem child because there are mostly row homes in the area and not many single family detached. That said, the comps look miserable because you’d have to search too wide an area to really find something comparable. And then you’re not even in that neighborhood anymore. Which is to say that the neighborhood is stable because the single family houses in that neighborhood evidently don’t change hands often. Oh yeah, did I say it’s on a busy street?

Ok , the house needs a bit of work, but it’s all cosmetic (i.e. updating) because everything is functioning. I know a new heat pump was installed, but someone may want to replace the CAC unit (although it works fine).

They asked 160K, I’m sure I can probably get it @130K the ARV is about $180(maybe more).

Is this worth going after? Oh yeah, did I say it’s on a busy street?

What do you think? I need feedback.

Thanks,

Sypher

2

Doesn’t seem like there’s enough in the spread there. Once you factor in closing costs+rehab+holding costs+backend closing costs, you’re almost at your ARV. If this is going to be a tough sell on top of that…look else where.

3

Thanks Gabe! Just out of curiosity, what would closing costs look like? More importantly, what do you think would be a good offer for the property to make this a good deal?