I wanted to know what a rehabber/landlord would pay for a property that was a wholesale deal.
I want to short sale some deals and pass along to rehabbers/ladlords but with the lenders being greedy on what they give, I want to make sure there would be enough money in it for me as well as passing along a good deal to YOU!
What percent of the value do you like to see to make it worthwhile to you???
In general for rehab projects, I like to work backwards, meaning I want to be at no more than 70-75% LTV on the house AFTER all the work is done and closings costs/carrying costs are calculated in. so generally I"m looking at purchasing at 50-60 cents on the dollar before and costs are added in.
This question depends on your area. Where we live, rent near 1% of the price is considered a good deal. We’ve seen houses here where the entire interior of the house would have to gutted with no landscaping and there will multiple offers bidding the house well beyond the 1% level.