Cash Property question

[Tonya Jones]

Cash Flow property question:

Seller has a property listed for $39,000. I saw the property, and estimated $65k in repairs. This wouldn't work as a flip, but what about as a cash flow property.

3/1

ARV - $72k

Repairs - $65k

Monthly rent $950 - $1000

Seller is willing to go as low as $25k because I stated due to the repairs that $39k doesn't make sense.

I was at less than $5k because it's in terrible condition.

Does it makes sense as a Fix 'n Hold?

How do I approach seller financing topic that includes PP and repairs?

[Andrew Johnson]

Tonya Jones If the ARV is $72K all fixed up, just buy a 3/1 in the same neighborhood for $72K. There’s no reason to spend $5K on the house, $65K on repairs, and you’ll have holding costs for a $65K rehab so you’ll be out more than $72K by the time you get it rentable.