What’s the smallest house you’d wholesale? The reason I ask is that I have a house under contract that is a 2bd, 1ba with 732 sq ft. The lot is pretty big (8,000 sq ft), but I’m worried that the house may be too small. Other houses in the area are 900+ sq ft. Here are my numbers:
ARV - $170K
Agreed upon price - $92K
Repairs - $15K
Wholesale fee - $7K
Ben
Do you know anybody that is buying houses that small? If yes… then yes. If no… then no. Or of course if the price is right.
Sounds simple enough - :biggrin. I actually did more research last night, and a house a few doors down that’s smaller and has half the lot size sold for $190K a few weeks ago. So, I’m moving forward on this one. Worse case, I can purchase it and fix-and-flip or rent it out, since I spoke to a couple potential private lenders today that like the margin and I can get good terms.
Ben
To give you the yoda style answer:
The smallest house I would be willing to wholesale, is the smallest house my investors would be willing to buy.
It’s really that simple, don’t complicate it.
Eric Medemar
Yes the house is a small square footage, but your lot sounds like it may permit for adding on. I would also inquire with the building department and/or zoning department to learn the setbacks from the property line and any other limitations for building. You might add that to your “sales pitch” stating that the property has great potential as a 3/2 or whatever the lot might accomodate.
I agree with Yoda! However, I generally never buy the smallest, or the largest house on the block unless it is a screaming deal. They tend o be harder to sell. Places that a re the largest on the stree usually are priced much higher than the others on the street so harder to sell.
Chris