Potential Deal

Bird Dogs, Wholesaling
1

Okay ya’ll know I live in Louisiana, so there is an abundance of homes on the market. The only issue is the are no simple fixes and flips. Now knowing that review this deal. I am not sure if I want to wholesale it or rehab.

A 2 story 4 plex, 2bed and 1 bath each, at least 10 feet of sitting water for a week. Upstairs is not bad, downstairs need to be totally gutted. Tax apraissed value is 24k meaning the FMV is 34k. The neiborhood was formally not bad but low income, but always was occupied, most likely rented for $400 each united. The seller says that the first $5000, takes it. So what do ya’ll think. Get it under contract and then get funds to renovate or just make this a quick flip to an out of town investor?

2

depends on how much it will cost to repair it. doesn’t sound like much profit to flip it.

how much will it rent for today if it were repaired?
use this to do a backward cashflow to estimate what it would be worth.
subtract purchase, holding and repair costs to get to what you should be willing to pay.

At that low value and with all that repair, sounds like it may be time to bulldoze it.

3

Thanks for the advice MC, I wholesaled it a couple of days ago for 7k profit.