I am considering puting a bid on a bank owned sfh w/ 2 beds 1 bath
Excellent location
House needs a new bathroom and possibly a single lane asphalt driveway
Rest of repairs would be cosmetic and my wife and I would probably do most of the cosmetic work ourselves
ARV = $85,000
Est. Repairs = 8,000
My maximum offer would be $51,500
We would fix it up then sell it for retail.
Do you think this would be a good deal?
Brian
As written, I think it’s a good deal, especially if you are a newbie…it would be a great ‘practice house’…
Keith
sounds good to me just consider the 2/1 resale.could be a little holding time .
Not sure what you mean by 2/1 resale? Thanks.
He means a two bdrm, 1 bath house is only ideal for certain buyers, since most people buying want at least three bedrooms, so it may take longer to sell the house, which will increase your holding costs and decrease your profits.
Thank you!
I like your formula that you use to buy with the arv, sound like you have taken some seminars from Ron legrand ( he’s the man) sound good, try retailing with honding a mortgage on a promisary note at 8-9% non- qualiting mortage with 10-15k down and you do a rap around motgage on a note and then if worst come to worst you can sell the note. try this out…
later and good luck…
A friend is letting me borrow Legrand’s cash flow systems and is where I first discovered this formula.
“…try retailing with honding a mortgage on a promisary note at 8-9% non- qualiting mortage with 10-15k down and you do a rap around motgage on a note and then if worst come to worst you can sell the note. try this out…”
I don’t think I understand financing well enough to try what you’ve suggested. I’ll probably stick to conventional lending until I have more experience. Thanks for the suggestion though.