should I wholesale or buy and hold??

[Raeann Baumgartner]

Hello all!

I am a new real estate investor in the Fox Cities/Green Bay, Wisconsin, and I've been marketing for leads for about 3 months. I've been working on a lead with a potential seller for about a week now, but I'm have difficulty picking an exit strategy. Hoping someone can provide some insight!

Property is in default (pre-foreclosure) right now. 80k balance left on mortgage. Only minimal repairs required (less than 5k). I've done comparisons myself and ran the property through REI Autocomp (property analysis software) and have come up with an ARV of 120k.

I feel the numbers are a big tight to wholesale. But I'm wondering if anyone thinks buy and hold would be a good strategy for this property. I would prefer not to get a loan for the property in my name, so I would likely look to have an investor with cash to partner with.

Does anyone have thoughts or advice to offer? Any would be appreciated.

Thank you!

[Chad Nagel]

Rent would have to be quite high on a 80k deal for me. Thats over double what most of my rental units cost. If your ARV is correct, even paying an agent to sell you will net 25k on your first deal. Wish my first one was that profitable. Imo if you can turn north of 15k net on first deal, turn and burn. Re invest that money as the more deals you do, the better you will be educated and the margins get even better then !