Analyze seller finance deal

[Rema Organ]

I've recently made the decision that I would like to invest in real estate. I'm currently spending time reading books and practicing analyzing deals that I sees that when I'm ready to purchase I feel confident in my decision. Most of the deals I have come across are pretty simple analysis from the MLS however I came across and off market property that is a little more complicated. Looking for someone with more experience opinion on this property.

My market is a tourist location and has a median home sale price of $675K

Listing I’m analyzing:

SFH 2/1 1044 sq ft build in 1905

List price $590000K

ARV Seller says $789K but I will list comps below

Rehab per seller $95K

Rents in area are around $3K/mo

Close Downtown so could possibly AirBnB

The seller is offering seller financing at $40K down and carry the balance at 10% interest only for 18 months.

The inspection-My major concern*

-Foundation cracking at entry stairway

-Detached garage needs complete tear down and rebuild

-Foundation cracking/moving in walls in crawlspace.

_water damage in various parts of house

Comps

Two doors down 2/3 1860sq ft listed for $949K

2/1 $714500 sold 6/18

2/1 $770K sold 4/19

My thoughts are if the ARV were closer to the $949K then it could be a potential flip. The inspections are also concerning. Lastly, it appears the listing is directly from seller however the seller is another investor. It looks like he bought it for $510K and is now offering as listed above.

[Wayne Brooks]

The seller is looking for a home run from a sucker.....hence the offer of seller financing (for only 18 mo.s, then you are hung).

You can’t try to justify a $949k comp when that comp is 80% bigger.