I have my first deal under contract and would like some feedback as to what some seasoned investors think of it. I have a contingency in the contract stating “This contract is contingent upon securing financing.” in case I need to get out of this deal.
Here are the numbers
purchase price 40K trying to wholesale it 45K
ARV 135K determined by COMPS and I think that playing it safe. None of the comps had a 1/2 acre lot attached to it with a 40ft working shed.
Repairs:
25-30K foundation repairs this is the most expensive bid(cheapest was 21K)
9K to reroof
4K to remodel both baths
3K to remodel kitchen
6K for new garage and driveway
4K new paint inside and out
3K new appliances
I think these numbers are all playing it safe
I know the rule of AFV * 70% - repairs-assignment fee= most would offer
45k(end buyer purchase price)+54K(repairs)=99K(total cost)/135K(ARV)=73% of (ARV)
I know investors look for 70% of ARV with repairs but I was thinking if someone might not care for the 3%. Is this right for me to think an investor would still be interested in purchasing this house? Would any of you seasoned investors even bother with this house? I was also thinking an investor might be able to do these repairs cheaper.
As this being my first house under contract I’m just a little nervous about finding a buyer. I have a buyers list but since I cannot obtain a key to the property until 2 weeks due to seller needing to clean out the house I don’t want to contact my buyers since I cannot take them inside the house and thus losing their interest in the house.
If any seasoned investors have any comments or advice I would greatly appreciate it. Thanks in advance for your time.