debran
April 12, 2017, 5:04pm
1
I took a house on contract and wanted to ask if this would be a good investment for an investor:
House 2bed/1bath
Value is 68k
asking 45k (with wholesale fee and room to reduce price)
the rental potential is 700 - 800/month
the house has been updated and only needs some minor cosmetic work or can be rented as is.
What do you think of this?
javipa
April 12, 2017, 9:13pm
2
I took a house on contract and wanted to ask if this would be a good investment for an investor:
House 2bed/1bath
Value is 68k
asking 45k (with wholesale fee and room to reduce price)
the rental potential is 700 - 800/month
the house has been updated and only needs some minor cosmetic work or can be rented as is.
What do you think of this?
That’s over 30% off retail and a rent/price ratio of 1.77%.
That would make a great ad (minus mentioning the wholesale fee and price flexibility).
The upside is immediate cash-flow (depending on the financing), and equity capture at time of closing. Not bad.
I think it this wud be good for a 2-5K wholesale flip to a local rehab investor or as an 5-$8,000 flip to a landlord buyer.
Anytime you can get a property for about half of its ARV value, you probably have a good wholesale flip.
If your a little farther in the game you might keep it for a retail flip or a buy and hold.