Let me know what you guys think…
Rebecca needs to sell her house ASAP. It’s about 1,000 sqft and a 2 bedroom, 1 bath, 1 car garage. She said there is something wrong with the foundation and the house needs new windows. She also said she filed for bankruptcy last year and can’t afford to take care of her house anymore. The county retail appraisal for the house from last year is $94,000 and she currently owes $35,000 on her mortgage. I talked her down to selling for $42,000 and I gave all of this info to my investor.
Also, I checked some comps from the area, and very similar homes have sold for about $100,000 - $120,000 in the last 6 months.
I’m crossing my fingers. Does this sound like the numbers work?
Foundations can be VERY expensive. It needs to be inspected properly. It’s impossible to know exactly what the repair #'s are because you didn’t say. You won’t know the full extent of the repairs and their costs until you have an inpection done. Good luck.
Be sure that the comps you are checking are VERY similar in nature meaning don’t pull 3 bedroom comps if you are dealing with a 2 bedroom.
Many rookie investor make the mistake of thinking that it’s just 1 bedroom, but 1 bedroom is a huge price difference on the jump up from 2 to 3 beds, the rule diminishes considerably going from 3 to 4 or 4 to 5.
The problem with 2 bedrooms in areas that are largely 3 and 4 bedroom areas is that 2 bedrooms don’t leave alot of room for a growing family so you eliminate ALOT of buyer potential.
But, if you are wholesaling it and have a buyer in place then who cares. Your only buying what you have sold anyway.