The Offer - Understanding the Numbers

[Jared McCool]

Hey all, 

Looking for some help. This is my first property, and i am having a hard time understanding the numbers.  

Reo for 218k

I want to offer 170k, this is a 203k with estimated 50k in repairs. i am asking seller (bank) to cover closing cost. Arv is 240k. After repairs i would like 10k in equity, that is why i am offering 70% of value.  I know this property will cash flow, but dont want to pay more then the value of the market value.  i will be holding and renting this property.  Can some one please explain the breakdown below? Also, i am not sure if this is legal or ethical to post, it does not contain personal information, but if this shouldnt be posted please advise so i can delete.

[Simon Shih]

lol. Yeah they are. I was focused on the numbers. What's the market rent for this property in the area? 

Just out of curiosity, why would you go this route? You are basically buying retail and renting it out, but you are having to take the risk of rehabbing this property. If you aren't wanting to buy wholesale, then just buy a turnkey rental.