Getting the property for $160k may not be low enough (especially in this market). You need to be 110% sure that your $250k comps are accurate AND that $40k in repairs is also correct.
Be sure you know how long it will take you to get it fixed and also how long it will take to sell once it is complete. Holding costs can chew up profits very quickly. (250k * 70% = $175k minus $40 = $135k MAO)
I could negotiate the cost down. I’m sure that’s not a problem. I just found out that in 2008 alone within .1 miles from this property 3 homes sold for $200,000-$300,000. Which encourages me to follow through with this investment.
I had 3 general contractors estimate the repair costs and was given the same amount.
My only problem is I won’t be approved for the loan because of my low credit score. I really do not want to loose this opportunity. Any ideas?!?!