Is there any wholesalers out there that can give me advice on the formula to use when it comes to rentals. I want to assign the contract, but do they use a different percentage when they look at it?
for regular houses i use the 70% - repairs - my fees. Do you do the same for rentals?
I’m guessing the property has a tenant in it, that is paying and up to date on payments. If that’s the case you can maybe get a little more from a landlord than someone who would rehab it.
It is difficult to say because it greatly depends on your local market. The best way to get a good idea of what you can wholesale for is to contact landlords. Go to local REI meetings, contact “for rent” signs and ads. Ask the landlords to see if they are interested in buying more poperties and, if so, what type of properties do they like, what areas, and what numbers do they like to see concerning cash flow, etc - ie what would they be willing to pay for a SFR getting $700/month.
That way you will:
A) develop a buyer’s list, so if you find one you will have a number of people to market to for real quick sales
B) Get a real good idea of the rental market in your area as seen by local landlords.
from my experience rentals are no different than anyother home as far as offer price. Find out what investors are willing to pay, and try to tie it up for less. Be sure that your end buyer is fully informed about the leases on the home (how long, how much, how much sec dep)