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Updated over 7 years ago, 06/27/2017

User Stats

105
Posts
25
Votes
Alejandro Flores
  • Investor
  • Pasadena, TX
25
Votes |
105
Posts

Rent Ready do I still use 70%ARV (wholesale)

Alejandro Flores
  • Investor
  • Pasadena, TX
Posted

I got this house from my DM campaign, the seller wants to get the retail price. She still wants my offer and I will give her my offer as soon as I check out the house which looks like repairs are not needed, I know the neighborhood and the house was built back in 2012. This is the numbers:

ARV: 155k (selling in less than 2 months)

Rehab: 2k? (doesn't need any repairs but just in case)

155k (times) .70% = 108.500

108.500-2k(rehab)= 106.500

Max offer 100k since I would like to make a 6.500$ profit in this transaction.

On this house I will pass it to my realtor since she(seller) wants full price and if my realtor sells it ill get a finders fee. Now I know I will not get my offer accepted since she's not really motivated and it's low ball offer. My question is do I use the 70%Rule on rent ready houses?