Working on my first deal. Property listed for 199,900. Comps came back at 221,556. Had a licensed contractor estimate repair cost, in which he gave a totol of repairs at 40,000. So i did the figures: 221,556 ARV *65% =143,650-40,000 repairs-10,000 assignment fee=93,9650 MAO. Equity is 221,556-143,650=77,906 in equity after all repairs and fees Didn’t include holding cost and other fees that may be associated. One of my concerns is an oil tank in which seller will fill with sand and provide documents. Want to know if this is a good deal to make an offer or not. need some advice. By the way, this is a 1 family in a great location.
As long as your comps and repair costs are correct you have a good deal buying it for 94K.
Be sure that your comps are like yesterday…
Not 6 months ago…
Oil tanks can be tricky if there was intial spillage…Just cover your a$$, and research outstanding code violation from the tank if any.
What is the sellers motivation for selling so low…Though great deals do come around, it’s always important to understand why a great deals has decided to come around when your dealing with a private seller.
good luck