I have a list of houses that show roughly $60k owed, the house is valued somewhere around $350k - $400k. I am looking to contact the owner(s) of the property. I saw the house and it needs no external fixing, should I persue this? Can someone give me a quick and simple formula to see if this was a good deal if I could negotiate the seller to about $200-$300k.
Rule of thumb: take 70% of ARV minus repairs= Maximum Allowable Offer. You need to negotiate below that to be sure you can come out ahead. Remember to try to negotiate a win-win deal, rather than one in which only you win.