Need help analyzing this situation:
“Pretty” house in upscale neighborhood.
Seller owes $220 + $13K in arrears. There is also a $14K mechanics lien on the house. There is some second floor water damage from a commode that broke. Seller says that most of it has been repaired. In his view, the house only needs new carpet and baseboards. New kitchen countertops wouldn’t hurt.
Seller got an As-Is estimate value from another investor at $240K. Seller believes ARV is $260K.
RealQuest gives FMV at $250.
What do y’all think? Worth it to pursue?
Thanks in advance for any advice y’all can give!
you need to get comps for the area. the formula to use : APV multiplied by.7 subtract your repairs that will give your top offer to to lender. Why did’nt the other investor take the property?
'Ppreciate your response!
From what I gather, the other investor wanted to do a Subject-To on this deal. However, seller doesn’t want anything of that sort. He wants to get off the title and mortgage of this house. He wants to wash his hands completely of it. So that’s why he wants to work it as a short sale…get this…he works as a realtor himself!
However, this is an investment property and from what I understand, mortgagors aren’t too sympathetic when it comes to repossessing investment property.
Quick question…what does APV stand for?
HA! i meant after repair value :shocked
Do not put much weight into what seller thinks the home is worth
By the 65% rule, this property needs to be around 380k ARV to
be workable. This is far from a good deal and you should move on to the next one.
I dont understand. Why dont you just work the short sale and see what kind of discount you can get? You are asking about a short sale, yet you are analyzing the deal as if you were going to wholesale it.
Work the short sale and create the equity yourself is what I would do.