Don't Think My Numbers Add Up

[Eduardo A.]

Thinking of putting an offer in for a property but after crunching numbers, it looks like a BAD deal. Please let me know if my thinking is correct

Property
Conservative ARV: 90k
My Best Offer: 50k
Rehab: ?? (My guess is 30k, I like to plan for the worse do I put it high, BUT I am going to get a few GC's in just to get a feel)

Financing
HML 60%ARV
20% Down Payment
15% interest only payments
6 month balloon term
Points and Fees – 5% or minimum

After crunching the numbers, I lose a bunch of money but do you guys get the same result? The only way I could make money on this deal is if A) the rehab is signicantly lower, which I don't think can happen or B) I buy it for less than 30k.

[Ophelia Nicholson]

Ed,
Sounds to me like you are trying to talk yourself into a bad deal. If the numbers don't add up to you- They won't add up to someone else. If it didn't make sense in your mind then it won't make sense on paper. You need to get to the point where if it doesn't make sense you move on and find another deal that does- I have lost lots of deals to highest and best but my take is if you are willing to pay that much for it- Good for you but paying that much isnt worth it for me.
When you run the numbers and you feel you will lose money- the first thing you should do is move on- don't give the house another thought.