My first deal, woo hoo

[Richard Gaston]

Ok, I am working on my first deal. I know the guy, for about 5 years now, a regular customer where I work at and he is also my Tech Advisor for my Surveillance Camera biz if anyone needs assistance right away. He has a house and from what I understand it was converted to a duplex, Upstairs converted to an apartment with a seperate entrance, dual Electrical Box so they can pay for their own Electricity. He told me last night he is willing to sell it (my very first motivated seller, lol). He told me that it was Appraised at $150,000.00 in the condition that it's in. Ok I hear that my short hairs start curling (on my neck) and my hair is pretty short right now lol.... I talked to my GC and we both agreed that there maybe a lot of work that needs to be done to it. I do not know what the ARV will be, just what he told me. I am assuming that there will be a lot of work. My question seeing that it was Appraised at $150,000.00, I am assuming that is FMV not ARV seeing it was said "in the condition that its in", now in order to get the ARV do I add the costs of repairs into that to make it more then $150,000 (as long as it don't go over the FMV)? I have not had a chance to look at it yet, so I am going to assume that the repairs are extensive and may have to offer less then $150,000.00.