Should I contact the owner or not? <First potential wholesale of rental property>

[Mason V.]

I found a FSBO 2/1.5 1400 sqft in the neighborhood where I live in Portland Oregon. According to the flyer they want $134,000, it is within walking distance of an elementary school and it is on a low-moderately trafficked street during rush hour. The flyer also says it has a new roof, remodeled kitchen, large shed, newer appliances and freshly painted interior.

I found the 2010 purchase price and it was $199,000. My comps, found on zillow, range from $150,000-$227,000. The cheapest property had 200sqft less but same bed/bath. The most expensive had 2 baths and 150sqft extra. All properties were less than a mile away. The overall average price per sqft came out to be $138.25 and multiplied to the homes sqft I came to a price of $198,000. Since records show it was bought for $199,000 I set the base price to $200,000. From there I added the price of a new roof, the shed’s sqft and paint for a total price set at $216,000 (improvements+$2,000 profit for them). I did not factor in the remodeled kitchen since I could not find reasonable number online. The lowest I saw was $20,000. From the pictures they have, I can’t imagine it costing more than $10,000, but, being a noob, I really don’t know.

After that I set the price to $220,000k for my minimum bid. $4,000, assuming the government will take 30% as they do with earned income, would give me about $200 more than I need to live per month for 2 months. If need be I could go down to $2,000 but no lower.

Using biggerpockets for set costs
http://www.biggerpockets.com/renewsblog/2010/03/17/calculating-fixed-costs-flip-rehab-wholesale-real-estate-deal/
Purchase and selling $220,000+$17,000=$237,000

Rehab? from the picture, none if buyer wants to rent it out.

If they want to sell it? I don’t think it would work. Just seems way to expensive for my stingy butt. however, from looking at the pictures, new windows, better paint, some electrical such as better ceiling lights, better tile floors and possibly a new carpet. Using homewyse.com, don’t know this site’s reliability but it give me an idea, I would say

$8,300 total in upgrades.

$245,300 total. I have no idea how the rehabber would determine what it would sell for. However, at $245k I don’t think it would be worth investigating. Most of the similar homes in the area seem to have sold at the $180-$200 range.