Evaluation of Possible Deal

[Melodee Lucido]

I am doing my best to learn how to calculate the numbers on leads so that I can intelligently offer good properties to people looking for rentals. I've studied for about an hour (til my eyes were crossed and brain ached) about the 50% and 2$ rules. I know the rules are different in various markets.

I had a seller contact me today that has 5 properties he wants to sell. He seems like a fast talking (panicking) newer investor. Here is one deal he presented.

house in Kansas City 64127 3&2 1150sf
needs new elec box, some elec & plumbing work and some cosmetic;
total under 10k repairs he says;

seems best for an investor that wants it for a rental (my newb eval)

He wants $18,500 (non nego he says) didn't define the terms
Open to owner finance
Comps in area about $50k according to Zillow
Ave rents in area are $577

If an investor put down 10% or $2000 and
paid $250-350mo
is this an attractive deal?

I am a brand new "investor" in this niche and trying to figure a way that will work for my fellow investors that might want a prop like this. The seller is a hard core in your face kinda guy so there is no talking with him---no much anyways.

i need to present to him a feasible plan and see what he thinks.

Be gentle guys---just feeling my way along a new path. Teach me the way.

Thank you : >

[Joel Owens]

Define your end buyer. Are they a flipper or a buy and hold investor??

The cost to get rent ready and flip ready are two very different things. On the face of it sellers usually underestimate repairs so I am betting more than 10k in repairs.

The seller is probably wanting to get what they have out of the purchase they made and then they have original money back plus the income stream on the new loan.