How To Calculate My First Offer

[Nathan Reo]

Hey, Reo here.  Bran new.  Hoping to get some help on my first deal.

I want to offer to buy a lady’s house.  She’s an old widow who doesn’t really want the property.  She got it when her husband passed and doesn’t know how to be a landlord (charges less than half average rent)

House is worth $227K. I already got CMA. 5 bed 2.5 bath 1400 sq ft upstairs.

Here’s my embarrassing attempt at doing the calculations:

- horrible condition, so $40K in repairs

- I want 30% equity position for safety cushion, so subtract $68K from $227K

- Realtor 6%, Title fee 1%, Buyers closing cost 3%.  So subtract another 10% or $22K

Leaves me with $96K.  Should I offer this little old lady $96K to buy her house?

(Her late husband bought it for 99K in 1996)

Help please