Deal or No Deal? Please Help Analyze My First Potential Deal

[Dre Lewis]

Hello fellow investors, I will try to keep this as brief as possible, however, I want to get you guys up to speed on my situation. In a nutshell, I'm located in the Chicago market, looking to not only network with others here locally, but to also begin investing. From others I'm working with, and BiggerPockets of course, I feel I've learned enough to get my feet wet in the business already, and I figured why not start with my warm market. Earlier today, I spoke with a seller that I have a good amount of rapport with. This lady and her family lived next door to me for the last 15-20 years. I grew up with her kids, same schools, the whole 9 yards. One day back in 2013, her son committed murder, and they immediately moved out of the house. Since then, she had the property listed, lowering asking price several times, but never sold it. She recently took it off of the market. So I payed her a visit today and based on the information received, I was wondering if I had a potential deal here. It'd be cool if I could create a win-win situation for us both, and close my first deal. The property is a 4/1.5 brick bungalow, about 1,750 sqft with a two-car garage on about a 6,600 sqft lot, and a full unfinished basement. Based upon what she told me and from what I can see/recall, it needs about $30K worth of work to bring it back up to par. I don't have a solid ARV yet, as the available comps aren't really good. However, a similar 4/3 brick bungalow, literally across the street, sold for $282K last Halloween. With a quick google search for an estimated value, (I'm aware these numbers may be highly inaccurate), I found the following: Zillow- $243K Homesnap- $198K high est., $173K mid est. Homes- $173K Trulia- $151K She owns the property free and clear, says she only pays taxes, which she owes about $3,100 on. She wants $150K for the property, and seems firm on that number. She mentioned that an investor offered her $60K. Shortly after, another investor offered $100K, which she seemed totally offended by, declining both offers. I was wondering, since it doesn't seem ideal to wholesale it, if somehow I can acquire the property, giving the seller her desired $150K and maybe I lease option owner finance it for perhaps $175K. But I'm unsure of the most profitable exit I could take on the property. My main question is, does this even seem like a deal or no deal? If so, what exit strategy would you exercise on this deal? Thanks in advance for reading, any advice, opinions, thoughts or recommendations are appreciated. Some may be unwilling to complete my mini novel/autobiography. (: