Need Help in Deal analysis/ Offer

[Jose Enage]

Hello everyone. I just started my very first direct mail campaign targeting out of state property owners and have been getting calls and responses. There were a lot of curious calls (wanting a property price estimate only) and there are a few motivated. This one seams like a motivated one. I am new at wholesaling and have this out of state owner awaiting an offer for his property. This would be my first offer so you could imagine I am excited but a bit unsure as to what to do. Here is the breakdown:

Property detail: 2/1 (996 sq ft)
Tax assessment (2012): $25,000 *
Zillow estimate approx. $75,200
Trulia estimate approx. $69000
Median home cost in the area (zip code) is $124,900
*The property right beside it with same configuration/size was tax assessed in 2011 at $20k)

Property was built in 1940 and its got a new new 5 yr. old roof and sidings. It is fully paid (no mortgages). Property is beside a Fire Department and zoned as commercial. Are there any implications here I should be aware of?
It is currently renting for $600/mo. (average rent is $760, median rent is $650) He priced it low just to attract renter to just make regular rent payments to his account.
Seller appears to be motivated as he lives 13 hours away out of state. To determine how motivated he was, I asked if he was willing to option the property to me with an option to buy. He does not mind optioning the property to me as long as the current tenant is not bothered because at one time the tenant wanted to buy for 50k. I mentioned that if I paid all cash and closed quickly, what would be the least amount he would take? He said $35,000.

I was thinking of offering $35,000 to lock it in and wholesale for $45,000. What do you think? How reliable is Trulia and Zillow? Is there enough meat for everyone here? Is this a real deal? (it seems to me)

I would appreciate your inputs

Thanks!!

[Mary B.]

Before you choose your out of state market as a place to do business research basically perform some due diligence and find out what townships or subdivisions of the city are selling if at all, DOM, how much the 3br/1ba SFR sells for etc... if its a rental (buy and hold) market there, what are the rents going for and if its primarily a Section 8 township/subdivision.

If its in your favor that you can flip to your buyers(which you might want to pre-screen and line up a good 2 or 3{reverse wholesaling comes in handy out of state}) then make your offers. It tarnishes your credibility if you are sending out marketing letters then don't follow through when the seller(s) answer back.

Also find some birddogs in the town you're looking to market in so you can have photos and some input (their knowledge of the neighborhoods help a lot) on what neighborhoods are upcoming or on a downturn.

Don't use the Zestimate for its unreliable(when in the subject property scroll down to the list of properties that have sold in yellow on Zillow). Don't forget about realtors.com for comps too.

Kudos,
Mary