FIRST TIME BUYING FROM WHOLESALER

[Tanner Barnes]

I'm in talks with a wholesaler now. His numbers he gave me seem fairly accurate and of course my numbers are giving me a cushion because I always feel a safety net is important.

He has a property listed for 155k, I had someone go and inspect the house with me, and while I was in the attic checking the roof out for leaks the person I had with me asked pricing and the wholesaler said 151k is as low as he could go. Given the guy with me knows nothing of wholesalers and before he asked the wholesaler he mentioned I guess I need to ask the owners a few questions and he later let me know the seller was very against that. 

Wholesalers estimates rehab to be about 25-29k, rent should be 1600-1800 a month, and ARV should be around 230k-240k.

Anyways here's projections I came up with, the house needs new siding and it's fairly large, I guessed 15k - 20k, the front porch could use some foundation work I didn't know how to guess so I assumed 5k on that, then I blanketed myself a 10k interior renovation. I told the seller I would assume it would rent for $1500 a month and I need a 1% rent on purchase + rehab.

So if my calcs are correct I need the house purchase to be anywhere from 115k to 120k.

I think we're fairly close on our projections which is good, it's asking him to drop 30k from a price I'm not sure he will go for. 

[Heath Ryans]

@Tanner Barnes after it expires and he couldn’t sell because he can’t run numbers. Yeah by all means. I would say your all good. Gotta make deals somehow.

If he cant go that low, which im sure he cant, just tell him the margin isnt there for you. I agree with your purchase price. Somewhere in the 120 range makes sense if your confident in those repair numbers.