I have a newly rehabbed brick 2 unitproperety under contract on the southside of Chicago. It is located in a decent neighborhood and a great block! The FMV of the property is about $150k I’m wholesaling it for $109k. Everything has been rehabbed with a partially finshed basement and duplex ready attic. I’m having problems moving the thing! I put it out to all of my buyers but they would rather purchase and do their own work. I switched strategies this week and started calling land lords from news paper ads and go section8.com. I’ve already posted on the internet am I missing anything?
Without knowing anything more, it might appear that your 72% ARV price isn’t actually 72% of ARV. Lots of people would jump on a genuine 72% ARV deal that needed nothing. So, something else must be up.
I would ask…
How many comps are there? (hopefully you’ll find at least 3)
How many comps have sold in the area in the last 90 days? (only those count)
How many days on market for comps the area? (only count those sold in the last 90 days)
If there aren’t enough comps, or the number of days on market is longer than say 90 days (or like 180 days), and there just aren’t that many comps in the first place, it might require adjusting the price, until you get serious bites, OR just continue marketing the property knowing that the market is slow.
Meantime, it doesn’t appear you’re doing everything to get exposure of your property. I think you would do yourself a favor by posting an ugly, yellow bandit sign in the front yard and check out this thread for some good feedback on the very issue you’re asking about…
http://www.reiclub.com/forums/index.php/topic,49849.msg245487.html#msg245487
You want to move a 2 unit to someone that is a would be landlord. Have you done the math to see if the property makes sense as a rental property?
What would be the carrying costs of the property to include management, vacancy, taxes, insurance? The clearer a picture you can present to your potential buyer the better chance you have of a deal being done.
I personally am a buy/hold investor in Chicagoland. But I usually don’t touch stuff in Chicago because of the massive restrictions place on Landlords. So I stay out of the City Proper
Also try putting out handwritten 12x18 bandit signs that say something like this:
Cheap 2-unit
$109k
Cash Only
111-111-1111