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Updated over 6 years ago, 05/22/2018

User Stats

10
Posts
5
Votes
Danny Overfield
  • Realtor
  • Phoenix, AZ
5
Votes |
10
Posts

Possible first deal and I'm going to lose it. SOS!

Danny Overfield
  • Realtor
  • Phoenix, AZ
Posted

I have this potentially awesome deal in my hands for a rental property and I'm about to lose it because I can't close!

I have a NE Mesa, Arizona property I can easily secure a purchase agreement on (I know the seller personally) priced $35K under retail. That doesn't leave a lot of room for rehab for a flip, but has great turnkey rental potential with that much instant equity built into the purchase. Paint is definitely needed to neutralize their color scheme but from what I can tell the rest of it is in good shape. All of the appliances, including the washer and dryer, come with the property. The pool pump is only two years old and the heater was just replaced this past winter. The property even has a new water softener and R/O system.

The sellers are prepared to list for retail but would prefer to sell quietly and are reducing the price to account for what would be realtor commission, all to avoid having to show their home to a bunch of strangers. 

This Dropbox link has photos and a few reports that show comp analysis that support rental projections with a cash purchase and with a finance purchase, and current retail. I ran projections with this property renting for $2,350 which is conservative with similar properties renting for $2,400 - $2,800. I even feel my retail value/ARV at $385,000 is on the conservative side - the same home sold on 4/5/18 for $410,000.

I'm hoping to get two things from this post:

1) Feedback on my numbers. Please tell me if I've analyzed this deal correctly, close to correctly, or not at all.

2) If the numbers look good, a capable investor who wants to take this property off my hands via a contract assignment! 

Thanks in advance everyone, happy investing!

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