Does this sound like a good one for my end buyer? These are the rough numbers…
Duplex, units rented for combined $1900 this past year. Tenants pay heat and electric. Landlord pays sewer and water.
ARV: $190,000
Work needed: $25,000
My asking price: $125,000 (includes $10k wholesale fee)
Would this be attractive to my buyer?
is this a duplicate post?
$125K is more than MAO. if you’re paying cash $125 is too much.
MAO = ARV x 70% - repairs = 190K x 70% - 25K = 108K
if you’re not paying all cash, then MAO does not apply.
Some of the experts feel that if a property value is over $140k or so, MAO can actually be $40,000…meaning that it can be a good deal without leaving 30% in as profit. Do most people go strictly by MAO of 70% regardless?
Thanks,