Is this a deal? Potential 4plex wholesale

[Thomas Burnett]

Greeting investors. I've been communicating with an owner and their broker for a very distressed 4plex property in Portland Oregon for a few months. The brokers are not going to re-list the property and the owners motivation is growing with looming deadlines to resolve the code violations.

A brief history and property details:

3500sqft

1 - 2bd/1bath 800sqft

2 - 1/1 700 sqft

1 - 1/1 650 sqft

ARV is between 875/900k.

The property was put under contract once for 500, and after reviewing their projected rehab costs of 250-300k during their diligence period, (broker admitted this was a bit high) they changed their offer to 400 and it was turned down.

I have a strong feeling after discussion with the broker that the owners would agree to sell near 425 with an agreement to cover the cost of their code violations between 10-15k. At that point market the contract @450k.

What are your thoughts, do you see any road blocks besides not actually having anything in writing?