I have found an reo property that is listed for 130k county assessed value is @173K most repairs are cosmetic (ie paint, carpet, very minor stuff) seems like a good one to wholesale to an investor. I found an HML that will give 75% ARV, I really don’t want to fix and resell it, I just want to pass it to an investor. would this be a good one to get the HML and sell to an investor for 5-10K any suggestions please.
Dan
Howdy Dan:
It may be a little thin unless the resell value is a bit low. The tax value is usually not the value you want to use. You need to find some sold properties in the neighborhood and compare them to get the after repair value. Once you add all the HML fees and carrying costs and your flipping fee your buyer will not be able to make a profit. It may be a OK deal for you to fix and sell to a retail buyer but even then the numbers may be really tight.